BetMGM Under Investigation in Massachusetts for Prohibited NCAA Football Prop Bets

03.10.2024

The Massachusetts Gaming Commission (MGC) has launched an investigation into BetMGM following the acceptance of more than $200,000 in prohibited NCAA football prop bets during the 2023 season. Over 15,000 bets were placed on the performances of individual college athletes, which is strictly prohibited under Massachusetts law.

Strict Rules on College Sports Betting

Massachusetts law sets clear limits on betting involving local college teams, allowing wagers only when these teams participate in tournaments with at least four competitors.

Even more stringent rules apply to prop betting on individual college athletes, with the practice banned entirely.

These regulations aim to protect student-athletes from excessive pressure and external influences, ensuring a fair playing environment.

Internal Audit Uncovers Violations

The violations were not self-reported by BetMGM, as is common industry practice, but were uncovered during an internal audit.

This has prompted the MGC’s Investigations and Enforcement Bureau (IEB) to determine whether BetMGM should face consequences for the breach of state regulations.

Further Breaches Discovered

In addition to the initial prop bets, a subsequent investigation by Gaming Laboratories International (GLI) revealed further violations.

These included 41 additional NCAA football player prop bets, 13 bets on college basketball athletes, and 12 wagers placed on the Women’s NCAA Elite Eight.

Additionally, BetMGM accepted bets on unsanctioned international events, such as Belarusian sports leagues and Glory Kickboxing, which are also not permitted under Massachusetts law.

MGC Chair Emphasizes Need for Protection of Student-Athletes

Cathy Judd-Stein, Chair of the MGC, highlighted the importance of safeguarding student-athletes in light of these violations.

She reiterated that prop betting on college athletes violates Massachusetts law and expressed concern over BetMGM’s actions.

A hearing is expected, though no date has been set, to address the multiple infractions.

BetMGM’s Cooperation and Market Impact

Despite the severity of the breaches, BetMGM has cooperated with the investigation, self-reporting the additional infractions identified by GLI.

The outcome of the hearing will be significant for BetMGM, as the company seeks to solidify its position in Massachusetts’ sports betting market.

Currently, BetMGM lags behind competitors, reporting $7.7 million in gross gaming revenue for Q2 2024, compared to DraftKings’ $73.5 million and FanDuel’s $56 million.