Massachusetts Regulator Alerts Investors to Emerging Risks in US iGaming Sector

Key Moments:

  • Jordan Maynard, chair of the Massachusetts Gaming Commission, expressed concern about increased exposure to gambling, especially on unregulated online platforms.
  • Massachusetts is the only state with a full-time staff solely devoted to responsible gaming and recently became the first to require certain customer notifications within 48 hours.
  • State regulators are collaborating with BetBlocker to prevent access to unregulated gambling sites, particularly for minors.

Regulatory Initiatives in Massachusetts

Jordan Maynard, chair of the Massachusetts Gaming Commission (MGC), has recently addressed the heightened risks associated with the expanding iGaming market across the United States. He expressed particular concern about advertising practices and the exposure of minors to illegal platforms, such as online prediction markets. Maynard discussed these issues and detailed the state’s efforts to counteract problem gambling while highlighting the challenges presented by new unregulated products.

Responsible Gambling Leadership

Maynard positioned Massachusetts as a frontrunner in responsible gambling policies, pointing to what he described as “industry-leading measures to reduce gambling-related harm.” He said, “We have a research and responsible gaming department that is second to none… internationally recognized.”

He further noted that Massachusetts remains the only state with a dedicated, full-time responsible gaming team. The MGC offers a range of services including time, budget, and deposit limits, a voluntary self-exclusion program covering racetracks, casinos, and sportsbooks, and marketing restrictions for self-excluded individuals.

Massachusetts became the first state to require age restriction labels on all gambling promotions. The MGC also introduced regulations mandating that operators notify customers of any limit within 48 hours, explain the rationale, and clarify which markets are impacted.

In a high-profile enforcement action, DraftKings received a state-record $450,000 penalty in the prior year for failing to prohibit credit card deposits, a move that preceded changes to the operator’s policy nationwide.

Challenges from Unregulated Prediction Markets

According to Maynard, the growth of unregulated and unlawful gambling venues, including prediction markets, poses significant risks—especially to younger audiences. He said, “The illegal market and these prediction markets openly target people who are under 21, but the legal market has strong technologies in place.” He cited a discrepancy in age controls, with prediction markets available to users over 18 due to federal regulations, in contrast to the 21-year minimum for regulated operators. Reports indicate a rising interest among younger customers in these platforms.

A Wall Street Journal article observed that companies such as Polymarket and Kalshi have promoted their services on social media platforms, including X, Instagram, and TikTok. These marketing strategies target university campuses and sometimes employ undisclosed sponsored content.

Massachusetts has been active in court actions regarding prediction markets, becoming the first state to prohibit Kalshi from offering sports-related contracts before a subsequent stay allowed the company to continue pending litigation.

Maynard has stated his support for these legal actions, asserting that prediction markets facilitate illegal sports betting.

Efforts to Prevent Underage Access

To address underage participation in unregulated gambling, Maynard announced that the Massachusetts Gaming Commission is now working with BetBlocker, a software tool that restricts access to gambling websites. The program can be installed by legal guardians or parents on their children’s devices to block prediction markets, unauthorized offshore platforms, and regulated gambling sites.

Overview of Massachusetts Responsible Gaming Measures

InitiativeDescription
Dedicated Responsible Gaming StaffOnly full-time team in the US focused on responsible gambling
Time, Money, and Budget LimitsTools available to help players set limits
Statewide Self-ExclusionVoluntary program covering casinos, racetracks, and sportsbooks
Marketing RestrictionsNo direct promotions to players who have self-excluded
Mandatory NotificationsOperators must inform customers of any changes within 48 hours
Collaboration with BetBlockerParental tools to block access to gambling sites for minors
  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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