BetMGM is once again under scrutiny in Massachusetts due to a series of noncompliance issues. An audit conducted by Gaming Labs International (GLI) revealed that BetMGM accepted numerous prohibited bets, including player prop bets on NCAA football and basketball, as well as bets on prohibited Belarusian sports leagues. These findings have prompted the Massachusetts Gaming Commission to schedule an adjudicatory hearing to address these violations. This is not the first time BetMGM has faced such issues, raising concerns about the company’s compliance practices.
Audit Findings and Violations
The recent audit by GLI uncovered several noncompliance incidents involving BetMGM. The most significant violation was the acceptance of over 15,000 prohibited NCAA football player prop bets. These bets, which are not allowed under Massachusetts regulations, were placed over the course of the last season. The total handle for these bets exceeded $200,000, highlighting the scale of the issue.
In addition to the NCAA football bets, the audit found that BetMGM accepted bets on other prohibited markets. These included player prop bets on men’s and women’s college basketball games, as well as bets on Belarusian sports leagues. The acceptance of these bets indicates a broader issue with BetMGM’s compliance processes and raises questions about the company’s ability to adhere to regulatory requirements.
The Massachusetts Gaming Commission has expressed serious concerns about these violations. The commission’s Investigations and Enforcement Bureau (IEB) has been closely monitoring BetMGM’s activities and will present the audit findings at the upcoming adjudicatory hearing. This hearing will determine the appropriate actions to be taken against BetMGM for these noncompliance issues.
Previous Noncompliance Incidents
This is not the first time BetMGM has faced noncompliance issues in Massachusetts. Earlier this year, the company was found to have accepted a large number of improper bets on college football player props. These incidents were not self-reported by BetMGM but were identified by a member of the commission’s sports wagering team. This lack of self-reporting has further complicated the situation for BetMGM.
In response to the earlier incidents, BetMGM hired GLI to conduct a comprehensive audit of its sports betting markets. The goal was to identify any other improper markets being offered to state bettors. The preliminary results of this audit have now revealed additional noncompliance issues, indicating that the problems are more widespread than initially thought.
The repeated nature of these violations has raised concerns among regulators and industry observers. There is a growing sentiment that BetMGM needs to take more robust measures to ensure compliance with state regulations. The upcoming adjudicatory hearing will be a critical moment for BetMGM to address these concerns and demonstrate its commitment to regulatory compliance.
Implications for BetMGM and the Industry
The noncompliance issues faced by BetMGM have significant implications for both the company and the broader sports betting industry in Massachusetts. For BetMGM, these violations could result in substantial penalties and damage to its reputation. The company will need to take swift and decisive action to address the issues identified in the audit and restore confidence among regulators and bettors.
For the industry as a whole, the BetMGM case serves as a reminder of the importance of robust compliance practices. As sports betting continues to grow in popularity, regulators are likely to increase their scrutiny of operators to ensure that they adhere to all relevant laws and regulations. This increased oversight will be crucial in maintaining the integrity of the sports betting market and protecting consumers.
The outcome of the adjudicatory hearing will be closely watched by other operators and stakeholders in the industry. It will set a precedent for how similar noncompliance issues are handled in the future and could lead to stricter enforcement of regulations. For BetMGM, the hearing represents an opportunity to demonstrate its commitment to compliance and take corrective actions to prevent future violations.
