The Massachusetts Gaming Commission (MGC) is under scrutiny for greater regulation as a recent state audit uncovered deficiencies in the oversight of sports betting promotions and the training of responsible gaming representatives.
The audit, made public by State Auditor Diana DiZoglio, assessed the commission’s operations from 2020 to mid-2023. It highlighted that 17 sports betting advertisements failed to include the number for the state’s problem gambling hotline, which is mandated by state law. Furthermore, there were 51 documented cases of marketing materials being sent to individuals under 21 or to those struggling with gambling issues, both violations of Massachusetts law.
The report also raised concerns regarding the commission’s GameSense initiative, which places trained representatives in casinos to assist individuals at risk for gambling addiction. The audit found that documentation of mandatory training was absent for 50% of the 20 agents evaluated.
“Our findings indicate regulatory failures that we urge the Commission to address in the next six months, at which point we will conduct a follow-up review,” DiZoglio stated.
Recommendations and official response
The audit advised updating regulations to necessitate the commission’s review of sports betting advertisements prior to their release, as current guidelines do not require such pre-approval.
MGC spokesperson Thomas Mills recognized the audit’s recommendations: “The noted administrative efficiencies will enhance the Commission’s ability to regulate the Massachusetts gaming sector.”
The commission has engaged an independent auditor to evaluate advertising compliance among gambling operators and is dedicated to keeping training records for GameSense representatives.
Increased scrutiny and legislative responses
Massachusetts legalized sports wagering in 2022, allowing operators such as DraftKings, FanDuel, and BetMGM to enter the arena. However, advertisement practices within the industry have faced backlash from public health advocates and have led to lawsuits, including claims that DraftKings has utilized deceptive promotions encouraging frequent betting.
“The revelation that the Commission has not actively monitored sports gambling marketing during the initial months of Massachusetts sports betting is deeply concerning,” remarked Mark Gottlieb, executive director of the Public Health Advocacy Institute at Northeastern University, as reported by the Boston Globe.
Harry Levant, also from the institute, indicated that the findings of the audit reflect broader issues with the industry’s approach to responsible gaming. “Sadly, the reluctance of the MGC to take regulatory action directly aggravates the rising danger to public health,” he lamented.
In response to these issues, legislators are considering various measures. One proposal, the Bettor Health Act, aims to impose new restrictions on sports betting advertisements during live sporting events and implement additional consumer protections. This bill has not yet been scheduled for a committee review.
Additionally, another bill to allow online casino games has made it to a committee hearing but remains pending in the legislative process.
The auditor’s office is set to conduct a follow-up review in six months to evaluate whether the commission has implemented the suggested changes.