Bettors and sports fans aspire to see legal sports betting up and running in Massachusetts. But regulators said Thursday that quirks in the new law are preventing state gaming commissions from laying out a timeline for its launch.
The Sports Betting Act, signed into law by Gov. Charlie Baker in early August, allows the Gambling Commission to issue sports betting licenses for state slot parlors, casinos and simulcast centers to place bets face-to-face. The law also allows these establishments to partner with mobile operators and license mobile sports betting apps to up to seven other independent companies.
The law further indicates that temporary licenses may be issued for sports betting businesses. There is a limit of seven untethered mobile licenses, but Congress has not set a limit on the number of temporary licenses.
With at least 30 operators expected to apply for these seven licences, committee officials are concerned about what will happen to the dozens of operators who may qualify for temporary licences. increase. They will last up to a year and companies will pay a fee of $1 million each. After making a bet in Massachusetts, once the seven official mobile-only licensees are picked, the companies will probably have to shut down.
Executive Director Karen Wells said 76% of temporary license holders will eventually have to cease operations in the state.
“This structure and this disconnect creates complexity for both regulators and licensees themselves, and also points to public concerns about consumer protection,” Wells said.
On the consumer protection front, Wells said “disruption in the market is inevitable” if a temporary licensed betting platform suddenly ceased operations.
She highlighted other possible issues: How can commissions ensure that players get back any money left in their accounts? What if the company doesn’t secure the final license, will they have to pay a security deposit to ensure that all stakes are paid?
“The idea of having to issue notices to well-run companies that just happened to fail to make the final cut of up to seven companies is unacceptable to me,” said chairman Cathy Judd Stein. .
Judd-Stein hopes to get more information next Thursday when the commission will hold a roundtable with potential mobile-only applicants at the state capitol.
“When we hear from all interested operators on these issues next Thursday, we may shed some light, come to consensus, and find solutions we haven’t thought of. I’m crossing my fingers on that front,” said Judd Stein.
Some commissioners hope to get closer to answering questions posed by bettors at next week’s roundtable.
Judd-Stein and Commissioner Eileen O’Brien believe the commission could have already drawn up a timeline for the start of legal betting, had it not been for the question of the temporary license.