Most within the gaming industry cite the Massachusetts Gaming Commission (MGC) as one of the toughest regulators in the country. With lengthy procedures, strict adherence to rules and fines for even the smallest infraction, it is somewhat notorious for its stringent nature adherence to the rules.
MA state auditor thinks MGC has an oversight problem
However, an audit from the state thinks otherwise. State Auditor Diana DiZoglio’s office conducted an audit of the MGC that spanned from June 2021 through June 2023 regarding its oversight of both casinos and sports wagering and came away with some harsh conclusions about the agency, including its treatment of sportsbooks.
“The Massachusetts Gaming Commission has a responsibility to follow the law and provide adequate oversight, especially pertaining to gambling addiction issues,” said DiZoglio. “Our findings reveal regulatory breakdowns that we encourage the Commission to continue addressing over the course of the next six months, at which time we will conduct our post-audit review.”
The auditor cited three issues with the agency during the audit. One involved non-disclosure agreements with departing commission employees. A second was concerned about the record-keeping on training of those in GameSense, the state’s responsible gambling program.
Auditor wants MGC to review every betting ad in advance
A third involved sports betting and concluded that the agency should be doing more to monitor ads from state sportsbooks.
Since retail sports betting only launched in March 2023, the auditor extended the research period to March 2024 to assemble a year’s worth of data and information.
In that year, the audit determined that the MGC received 51 submissions claiming regulatory advertising violations. The audit noted that 17 advertisments ran without proper citation of the Massachusetts Problem Gambling Help Line. There were also concerns about ads without overt 21 and up language.
The auditor chastised the MGC for not vetting every advertisement sent out by operators in advance. However, the regulations do not require that level of oversight. Rather, operators are expected to follow posted regulations to the letter and, if there is a violation, the commission can fine them or take other action.
MGC already actively fining operators for ads
In its response to the audit on ads, the MGC noted that it hired its own independent auditor to review operator activity during the period that the group may take enforcement action on. It also reiterated that it would require a regulatory change to alter the process such that ads are approved in advance.
Finally, it pointed out that it has been very active in terms of policing advertising. The group fined PENN Entertainment $25,000 for the Barstool Sportsbook Can’t Miss Parlay promo. It also recently conducted an adjudicatory hearing around a remark ESPN personality Rece Davis made suggesting smart sports betting was a “risk-free” venture.
“The MGC appreciates the Auditor’s work and comments on this topic and agrees that operator compliance regarding advertising and the content of advertisements is critical,” the MGC noted.
While the auditor’s statement focused on the negative, the MGC had a more positive outlook given the limited scope of the report’s concerns.
“The Commission thanks the Auditor and her team for a thorough review of Commission operations, and their ultimate finding of the Commission’s strong adherence to the laws and regulations that govern the agency. The administrative efficiencies noted will make the Commission a stronger regulator of the Massachusetts gaming industry,” MGC Spokesperson Thomas Mills told SBC Americas.
