Published on: November 13, 2025, at 04:28h.
Updated on: November 13, 2025, at 04:28h.
- Prediction market sports contracts are prohibited in Massachusetts sportsbooks
- DraftKings and FanDuel will launch their prediction market platforms next month
In alignment with a recent decision in Nevada, the Massachusetts Gaming Commission (MGC) is instructing licensed sportsbooks in the state to abstain from offering prediction markets tied to sports contracts.
On Thursday, the Massachusetts Gaming Commission (MGC) alerted the state’s seven licensed sportsbooks that they are prohibited from forming partnerships with prediction markets or offering sports-related event contracts within the jurisdiction. This directive follows announcements from various licensed sportsbooks in the Bay State that they planned to engage in prediction markets.
“Should you offer sports-related event contracts in Massachusetts or direct customers to such offerings in the state, the Commission may initiate actions up to and including revocation of your license. Additionally, if any other regulatory body takes action regarding your license due to your involvement in prediction markets, such action may impact your eligibility in Massachusetts,” stated MGC Executive Director Dean Serpa.
Among the sportsbooks holding licenses in Massachusetts are Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, and Penn Sports.
Crackdown on Prediction Markets
Massachusetts gaming regulators concur with the Nevada Gaming Control Board (NGCB) that offering prediction markets with event contracts related to sports outcomes falls under the definition of sports gambling.
“In Massachusetts, wagering on sports events is strictly regulated under M.G.L. c. 23N, defining ‘sports event’ as any professional or collegiate sport, tournament, motor racing event, electronic sports event, or any activity approved by the Commission as per [Chapter 23N]… Consequently, sports wagering is permitted only on authorized platforms licensed by the Commission,” Serpa clarified.
This notification from the MGC follows closely after DraftKings and FanDuel exited the Nevada sports betting market to focus on predictions. FanDuel’s parent company, Flutter Entertainment, relinquished its sports betting license, while DraftKings ceased its efforts to enter that state.
Recently, the NGCB determined that sports event contracts qualify as wagers. The board, widely regarded as the benchmark in gaming regulation, noted that the majority of prediction market contracts contravene Nevada’s betting regulations.
“The Board considers the provision of sports event contracts, alongside particular other event contracts, as forms of wagering activity under NRS 463.0193 and 463.01962. Wagering is recognized regardless of whether the contract is listed on a Commodity Futures Trading Commission-regulated exchange or elsewhere,” the NGCB stated.
“Specific examples of event contracts deemed as wagering by the Board include contracts based on the results of sporting events or other select occurrences like the World Series of Poker, the Oscars, esports competitions, and political elections,” the notice elaborated.
DraftKings Based in Boston
For DraftKings, headquartered in Massachusetts’ capital, the alert from MGC carries significant importance. Although the state gaming authority indicated that its ruling on prediction markets specifically pertains to operations within Massachusetts, the MGC also stated it may address any of its licensed operators engaging in PMs outside of the state in the future.
“The letters do not mention sports-related event contracts available outside Massachusetts or event contracts in general, but the Commission retains the discretion to address those matters going forward,” the MGC noted on its website.
DraftKings anticipates launching DraftKings Predicts next month, alongside FanDuel’s similar offering.