BetMGM Under Investigation in Massachusetts Over Illegal College Bets
Date: 2024-10-03 Author: Alex Crawford Categories: SPORTS BETTING
BetMGM is under investigation in Massachusetts for placing more than 15,000 illegal wagers on NCAA football players for the 2023 season, totaling more than $200,000. Despite strict rules prohibiting bets on student-athletes, BetMGM continued to accept such wagers, prompting an investigation by the Massachusetts Gaming Commission (MGC).
Massachusetts has strict restrictions on betting on community colleges, which are only allowed during tournaments involving at least four teams. The rules are even stricter for bets on student-athletes, as they are prohibited altogether. This measure is intended to protect students from undue pressure and outside influence.
The initial violations were uncovered through an internal audit rather than through self-reporting by BetMGM, a departure from standard industry practice where operators typically report their own compliance issues.
MGC Chair Katie Judd-Stein emphasized the importance of protecting student-athletes and expressed concern about the violations. She reiterated that betting on student-athletes violates state law. As a result, the MGC has tasked the Investigations and Compliance Bureau (IEB) with investigating whether BetMGM should face sanctions during a hearing.
In addition to the initial violations, a new audit by Gaming Laboratories International (GLI) has uncovered additional issues. The latest findings include 41 prohibited bets on NCAA football players, 13 bets on college basketball players, and 12 bets on NCAA women’s tournament games. BetMGM also accepted bets on unsanctioned international events such as Belarusian sports leagues and Glory Kickboxing, which are also banned in Massachusetts.
Despite the severity of the violations, BetMGM is cooperating with the investigation and has self-reported additional violations uncovered by the GLI. The MGC plans to address all of these issues in a single hearing, but has not yet set a date.
These issues come at a key time for BetMGM. The company reported $7.7 million in gross gaming revenue for the second quarter of 2024, generating $1.5 million in taxes for the state. However, that number was lower than its competitors. DraftKings led the way with $73.5 million in gross revenue, while FanDuel was second with $56 million. The outcome of the court hearing will have a significant impact on BetMGM’s chances in the Massachusetts sports betting market.
