Massachusetts‘ gambling regulator has fined Fanatics $20,000 for accepting bets on an in-state college football team, a punishment one commissioner labeled too lenient.
The Bay State does not allow bets on Massachusetts college sports teams, unless they are playing in a national tournament. The Massachusetts Gaming Commission (MGC) detailed in a meeting on Thursday that Fanatics took 83 wagers worth a total of $3,325.88 on a Boston College vs. Michigan State game on Sept. 21, 2024.
Fanatics self-reported the violations, and the MGC levied a fine of $20,000.
Individual staff member’s error
The MGC directed its Investigations and Enforcement Bureau (IEB) to investigate the incident back in January, and the IEB recommended the $20,000 penalty at the meeting on Nov. 4. The commission voted 4-1 in approval.
The IEB noted that the prohibited bets, placed over several days from Sept. 15-20, 2024, were made possible as a member of the Fanatics’ trading team erroneously disabled the sportsbook’s limit on the game. Fanatics voided losing wagers and paid out on the winning bets.
“Fanatics Betting and Gaming self-reported this infraction to the Massachusetts Gaming Commission in 2024 and takes full responsibility for the bets placed on markets that should not have been made available in the Commonwealth,” a Fanatics spokesperson told SBC Americas. “We take compliance seriously and will continue to improve our safeguards and processes in the future.”
Not strict enough, says commissioner
Commissioners referenced two past instances of similar non-compliance from Fanatics.
One of the commissioners who approved, Nakisha Skinner, noted that the three incidents all share the “common denominator” of being down to human error. She opined that nothing in the disclosed remedial measures seemed to address how Fanatics would eliminate the chance of an individual employee determining which bets the sportsbook allows.
Meanwhile, Commissioner Eileen O’Brien voted against the $20,000 fine, arguing that the amount was not high enough given the history of other incidents.
“I’m not satisfied with the fine,” she said. “I think only going up $5,000 each time they do this is not much of a deterrent on the operator. I’m a little disappointed, quite frankly, with the fine. I think it should be more severe. For the third offense on this, I would have gone harsher.”
While MGC Chair Jordan Maynard noted that Massachusetts’ fines are heavier than some other jurisdictions, O’Brien questioned whether that was “the relevant metric for deterrent” given the revenue that sportsbooks like Fanatics make in the state.
MGC’s enforcement counsel noted that Fanatics has since terminated the employee and implemented progressive discipline measures, although admitted she was not sure how they could eliminate the problem entirely. O’Brien argued that while remedial measures are always needed, employees losing their jobs over incidents like this places the burden of risk on the member of staff rather than the company.
