Bettors and sports fans are eager for legal sports betting to be operational in Massachusetts. But regulators said Thursday that a quirk in the new law prevents the state Gaming Commission from setting a timeline for its launch.
The sports betting law signed by Governor Charlie Baker in early August allows the Gaming Commission to issue sports betting licenses for slot machines, casinos and simulcast centers in the state to take bets in person. The law also allows these facilities to partner with mobile carriers and license no less than seven other independent companies for mobile sports betting apps.
The law further indicates that temporary licenses may be issued for sports betting operations. While mobile wireless licenses are capped at seven, the legislature did not include a limit on the number of temporary licenses.
With at least 30 operators expected to apply for those seven licenses, commission officials are concerned about what will happen to the dozens of operators who may be granted temporary licenses. These would last up to a year and cost the companies $1 million each. After taking bets in Massachusetts, the companies are likely to close once the seven official mobile-only licensees are chosen.
Executive Director Karen Wells said up to 76% of temporary permit holders could eventually be required to cease doing business in the state.
“This structure and disconnect poses complications for both the regulator and licensee themselves, and also presents consumer protection issues for the public,” Wells said.
On the consumer protection front, Wells said there would be “inevitable confusion in the marketplace” if or when betting platforms with temporary licenses suddenly go out of business.
She pointed to other possible issues: how could the commission ensure that players get back the money left in their accounts? What would happen if an operator was closed before the outcome of a bet they accepted was known? Should companies be required to post a bond to ensure they can pay all bets if they don’t get a final license?
“The idea of having to issue notices to honorably operating companies that just failed to make our final cut through seven is just untenable to me,” said chairwoman Cathy Judd-Stein.
Judd-Stein hopes to get more information next Thursday when the commission hosts a roundtable with potential mobile-only candidates at the State House.
“Next Thursday, when we hear from all interested operators on these issues, it could shed light, build consensus and also come up with a solution that we don’t think about. And I have my fingers crossed on that front,” said Judd- Stein.
Some commissioners hope that next week’s roundtable will bring them closer to answering the question bettors are asking: “When can I place a legal bet?”
Judd-Stein and commissioner Eileen O’Brien both said they believe the commission could have already produced a timetable for the start of legal betting had it not been for the questions about the temporary permit.
