Massachusetts Fines Sportsbooks $50K for Rule Breaches

Massachusetts regulators are cracking down on sportsbook noncompliance, sending a strong message to the U.S. betting industry.

The Massachusetts Gaming Commission (MGC) recently issued $50,000 in fines to top sportsbooks for violations ranging from betting on banned events to marketing to self-excluded individuals. Operators penalized include FanDuel, BetMGM, Fanatics, and PENN Sports.

While the fines may be modest compared to operator revenues, they reflect MGC’s zero-tolerance stance on compliance breaches. As the market matures, regulators are stepping up enforcement to ensure consumer safety and integrity in betting practices.

Operators must now double down on internal controls and risk management to avoid further regulatory scrutiny.

Massachusetts Hits Major Sportsbooks with $50K in Fines for Regulatory Violations

Key Points

• FanDuel and Fanatics fined for accepting bets on Belarusian national soccer teams
• BetMGM penalized for taking wagers on LPGA events before formal approval
• PENN Sports sanctioned for marketing to self-excluded individuals

FanDuel and Fanatics Violated Belarus Betting Ban

The largest share of the fines stemmed from unlawful betting activity involving Belarusian national soccer teams, which fall under jurisdictions banned by Massachusetts.

• Fanatics accepted 127 bets totaling $968.13 between September 2023 and March 2024 on Belarus’ national team — resulting in a $10,000 fine.
• FanDuel breached the same rule more extensively, accepting 3,871 bets worth $11,792, and an additional 178 bets in July 2024. FanDuel claimed a misinterpretation of state policy, but the MGC remained firm, issuing a $20,000 penalty.

These rules stem from Massachusetts’ broader stance against events governed by Russian or Belarusian authorities, which includes teams and leagues originating in those countries.

BetMGM Fined for Premature LPGA Betting

BetMGM faced a $10,000 fine after accepting 1,934 wagers on LPGA events between March 2023 and May 2024. The total handle was $1,642.46, but the real issue was the timing — wagers were placed before the LPGA was officially approved as a betting market in Massachusetts.

The state has since updated its regulations to allow LPGA betting, but BetMGM’s early acceptance highlighted a lack of procedural oversight.

PENN Sports Penalized for Self-Exclusion Violation

PENN Sports was fined $10,000 for a serious marketing violation: sending promotional materials to individuals who had voluntarily placed themselves on the self-exclusion list.

MGC Commissioner Eileen O’Brien advocated for a higher penalty of $20,000–$25,000, calling the incident a breach of public trust. However, other board members sided with the Investigations and Enforcement Bureau’s (IEB) original recommendation of a $10,000 fine.

This incident echoes PointsBet Australia’s AU$500,000 fine for a similar offense under Australia’s BetStop exclusion registry.

More Violations Loom

The MGC is not finished. It is currently reviewing two more compliance failures involving Fanatics and DraftKings.

• Fanatics reportedly accepted 36 bets on Heisman Trophy futures between January and March 2025, violating a rule that prohibits wagers on individual college athletes.
• DraftKings accepted 89 bets on individual player props during the Oregon vs. Arizona NCAA game — also a breach under Massachusetts regulations.

These cases are under further review and may lead to additional fines or disciplinary action.

Revenue vs. Regulation

Despite these violations, the fines are negligible compared to the operators’ earnings. DraftKings, for instance, posted $4.8 billion in revenue last year alone. However, the MGC’s enforcement sends a symbolic warning that operators are not above the law — especially when it comes to responsible gambling and event integrity.

Small Fines, Big Message

Massachusetts is showing the industry that compliance matters — even in a multi-billion-dollar marketplace.

The recent fines against BetMGM, FanDuel, Fanatics, and PENN Sports underscore the importance of accurate market eligibility, strict adherence to betting rules, and responsible marketing practices.

With more violations under investigation, operators must refine their internal controls or risk more frequent and expensive regulatory actions.

Ultimately, these actions reinforce Massachusetts’ commitment to a transparent, fair, and consumer-protective sports betting ecosystem — setting a precedent other states are likely to follow.

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