Massachusetts Warns on Sports Event Contracts, Threatens License Revocation
The Massachusetts Gaming Commission (MGC) has prohibited its licensed sports betting operators from offering sports-related event contracts within the state. In a letter dated November 13, 2025, the MGC informed all licensees that offering these prediction market contracts, either directly or through affiliates, is banned. Operators are also forbidden from directing patrons to such contracts being offered in Massachusetts.
Strict Prohibition and Compliance Mandate
The MGC’s notice is a direct, preemptive strike against the expansion of sports event contracts into the state. This move comes as major operators like FanDuel and DraftKings have signaled intentions to enter the prediction market space. The MGC strictly forbids licensees from:
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Offering sports-related event contracts in Massachusetts.
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Using an affiliate, related business entity, or other association to offer these contracts.
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Directing patrons to these contracts offered within the state.
The Commission stressed that wagering on sporting events is strictly governed by state law, M.G.L. c. 23N, and can only be offered on MGC-authorized platforms. The term “sports event” includes professional and collegiate events, motor races, and esports.
Regulatory Consequences and Suitability Concerns
The letter makes clear the severe consequences for non-compliance. The MGC warned that if an operator offers the prohibited contracts or guides patrons to them, the Commission “may take steps up to and including revocation of your license.”
Furthermore, the MGC noted that any regulatory action taken against an operator’s license by another jurisdiction due to its prediction market activities “may inform decisions related to your suitability in Massachusetts.”
This suitability clause is a direct reference to the recent conflict in Nevada. Just one day before the MGC letter, the Nevada Gaming Control Board (NGCB) announced it had accepted FanDuel’s license surrender and DraftKings’ withdrawal of applications. The NGCB had deemed their intention to engage in sports event contracts as incompatible with participating in Nevada’s regulated gaming industry.
The MGC has requested a written response within ten business days from all operators. This response must identify the specific steps the company will take to ensure compliance with the MGC’s notice.
Federal Versus State Regulatory Conflict
The MGC’s firm stance prevents a similar regulatory battle in Massachusetts. The Commission noted it was aware that “several Massachusetts sports wagering licensees are considering or have begun the process of partnering with entities in the prediction market space.”
This conflict centers on the legal classification of these contracts. Operators like FanDuel and DraftKings argue their sports event contracts are legal under federal regulation by the CFTC (Commodity Futures Trading Commission), treating them as derivative products.
However, the NGCB and now the MGC are classifying them as an unlicensed form of gambling that violates state sports betting laws. The MGC’s action aligns Massachusetts with Nevada in categorically banning this product from their regulated sports betting landscape.
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