The state regulator’s recent negotiations generated encouraging results, and the operator may shortly improve its temporary license.
DraftKings has taken the first steps toward obtaining a full five-year sports betting license in Massachusetts.
The Massachusetts Gaming Commission (MGC) held an adjudicatory hearing for more than five hours to assess the company’s suitability and any compliance issues.
Additional discussions in February 2025 should help answer any remaining problems and allow DraftKings to move forward with its application.
The Company Must Address Some Shortcomings
Despite the fact that the majority of the MGC’s DraftKings hearing took place behind closed doors, the Commission has recommended a full license for the operator, subject to a few stipulations.
Some of the MGC’s requirements require DraftKings to improve internal procedures and supply the regulator with updated fingerprints on key persons in order to meet compliance standards.
This commission very much cares about cultures of compliance, and in my view, that starts with the tone at the top of the organizations.
Eileen O’Brien, MGC Commissioner
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Other recommendations include improving long-term stability by settling outstanding civil litigation and regulatory issues, as well as adopting actions to eliminate regulatory violations. Michael Banks, a civilian inspector with the Investigations and Enforcement Bureau (IEB), stated that DraftKings has violated over 50 regulations in other licensed states.
Despite these observed flaws, the MGC remained positive about DraftKings’ prospects, pointing out that its standing was good in all operating jurisdictions. The agency indicated that additional information was requested pending an ongoing audit by consulting company RSM US.
The firm should present its findings within 60 days, and the study could have a substantial impact on the MGC’s decision.
Everyone involved remain optimistic
DraftKings has been operating under a temporary one-year Category 3 Sports Wagering Operator License in Massachusetts since February 2023, and its sportsbook activities began on March 10, 2023, when it acquired its operations certificate.
The MGC complimented DraftKings for its considerable contribution to the state’s legal sports betting alternatives and providing clients with a fair alternative to unregulated offers.
You provide a great service to the Commonwealth of Massachusetts, keeping people from the illegal market.
Jordan Maynard, MGC Chair
The MGC’s scrutiny demonstrates its commitment to balancing stakeholder interests and consumer protection. The Commission has issued an official seal of approval to all licensed operators.
DraftKings and other licensed organizations will display this symbol on their digital platforms to reassure players that they are dealing with a fully licensed operator who complies with Commonwealth rules and regulations.
DraftKings’ approach to a full five-year license demonstrates its dedication to retaining its dominant position in Massachusetts. The MGC will convene another meeting in February to review the operator’s application.
DraftKings expects to achieve long-term operational stability by meeting the identified conditions and engaging with the Commission.
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