The Massachusetts Gaming Commission issued a stern warning to sportsbooks Thursday, one day after one of the biggest providers announced a new business partnership. New York-based FanDuel on Wednesday announced a partnership with Chicago-based CME Group, a derivatives marketplace. The companies said they plan to launch a FanDuel Predicts app in December that will offer event contracts across various sports, financial markets and economic indicators. Event contracts are a financial product that allows traders to speculate on the outcome of a future event, like the result of a sporting event or the achievement of a stock exchange milestone. “In states where online sports betting is not yet legal, customers who are not on tribal lands will be able to trade event contracts on the outcome of sporting events. As new states legalize online sports betting, FanDuel will cease offering sports event contracts in those states,” FanDuel’s announcement said. Boston-based DraftKings also plans to enter the marketplace. In the company’s third-quarter business update, it announced plans to enter “many states with sport event contracts” as a way to expand “in the coming months.””Nearly half the country’s population remains without access to legal online sports betting, but there are several other companies offering federally regulated Predictions in all 50 states,” the DraftKings letter states. On Thursday, the MGC issued a warning to all of the sports wagering licensees in Massachusetts about event contracts. It begins by stating that commissioners are aware “that several” of the licensed companies are contemplating an entry into the prediction market space.”Please accept this letter as notice that you are prohibited from offering sports-related event contracts in Massachusetts,” the MGC letter states.Massachusetts law allows wagering only on events authorized by the commission, and the platforms must be licensed. The MGC also warned that if the companies run afoul of regulators in other jurisdictions, their Massachusetts licenses could be jeopardized.”In the event you offer sports-related event contracts in Massachusetts or direct patrons to such event contracts being offered in Massachusetts, the Commission may take steps up to and including revocation of your license. In addition, to the extent any other regulator takes action against your license due to your operation in the prediction market space, such action may inform decisions related to your suitability in Massachusetts,” the MGC’s letter warns.
The Massachusetts Gaming Commission issued a stern warning to sportsbooks Thursday, one day after one of the biggest providers announced a new business partnership.
New York-based FanDuel on Wednesday announced a partnership with Chicago-based CME Group, a derivatives marketplace. The companies said they plan to launch a FanDuel Predicts app in December that will offer event contracts across various sports, financial markets and economic indicators.
Event contracts are a financial product that allows traders to speculate on the outcome of a future event, like the result of a sporting event or the achievement of a stock exchange milestone.
“In states where online sports betting is not yet legal, customers who are not on tribal lands will be able to trade event contracts on the outcome of sporting events. As new states legalize online sports betting, FanDuel will cease offering sports event contracts in those states,” FanDuel’s announcement said.
Boston-based DraftKings also plans to enter the marketplace. In the company’s third-quarter business update, it announced plans to enter “many states with sport event contracts” as a way to expand “in the coming months.”
“Nearly half the country’s population remains without access to legal online sports betting, but there are several other companies offering federally regulated Predictions in all 50 states,” the DraftKings letter states.
On Thursday, the MGC issued a warning to all of the sports wagering licensees in Massachusetts about event contracts. It begins by stating that commissioners are aware “that several” of the licensed companies are contemplating an entry into the prediction market space.
“Please accept this letter as notice that you are prohibited from offering sports-related event contracts in Massachusetts,” the MGC letter states.
Massachusetts law allows wagering only on events authorized by the commission, and the platforms must be licensed. The MGC also warned that if the companies run afoul of regulators in other jurisdictions, their Massachusetts licenses could be jeopardized.
“In the event you offer sports-related event contracts in Massachusetts or direct patrons to such event contracts being offered in Massachusetts, the Commission may take steps up to and including revocation of your license. In addition, to the extent any other regulator takes action against your license due to your operation in the prediction market space, such action may inform decisions related to your suitability in Massachusetts,” the MGC’s letter warns.
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