State audit flags compliance failures in Massachusetts sports betting regulations

The Massachusetts Gaming Commission (MGC) is facing calls for tighter oversight after a state audit found gaps in the regulation of sports betting advertisements and in training programs for responsible gaming agents.

The audit, released by State Auditor Diana DiZoglio’s office, reviewed the commission’s operations from 2020 through mid-2023. It found that 17 sports wagering ads did not include the number for the state’s problem gambling helpline, as required by state regulations. In addition, 51 instances were identified where marketing materials were distributed to individuals under 21 or to people with gambling addictions — both prohibited under Massachusetts law.

The report also pointed to issues with the commission’s GameSense program, which stations trained agents at casinos to assist individuals at risk of gambling addiction. Documentation of required training was missing for half of the 20 agents reviewed.

“Our findings reveal regulatory breakdowns that we encourage the Commission to continue addressing over the course of the next six months, at which time we will conduct our post-audit review,” DiZoglio said.

Recommendations and response

The audit recommended updating regulations to require the commission to review sports betting ads before they are released. Current rules do not mandate such pre-approval. 

MGC spokesperson Thomas Mills acknowledged the recommendations: “The administrative efficiencies noted will make the Commission a stronger regulator of the Massachusetts gaming industry.”

The commission has since hired an independent auditor to examine gambling operators’ advertising compliance and is committed to maintaining training records for GameSense agents.

Broader scrutiny and legislative action

Massachusetts legalized sports wagering in 2022, paving the way for operators such as DraftKings, FanDuel, and BetMGM to enter the market. Advertising practices in the industry have drawn criticism from some public health advocates and sparked lawsuits, including cases accusing DraftKings of using misleading promotions that encourage frequent betting.

"The finding that the Commission failed to take a proactive role in monitoring sports gambling advertising in the critical first months of Massachusetts sports betting is a cause for deep concern,” said Mark Gottlieb, executive director of the Public Health Advocacy Institute at Northeastern University, as per a Boston Globe report.

Harry Levant, also with the institute, said the audit’s findings point to systemic issues with the industry’s approach to responsible gaming. “Unfortunately, the reticence of the MGC to regulate the industry directly contributes to the growing threat to public health,” he stated.

Lawmakers are weighing responses to these concerns. One proposal, the Bettor Health Act, would place new limits on sports betting ads during televised sporting events and introduce other consumer protections. The bill has yet to receive a committee hearing.

A separate bill that would permit online casino games has advanced to a committee hearing but remains pending in the Legislature.

The auditor’s office plans a follow-up review in six months to assess whether the commission has acted on the recommendations.