FanDuel Faces $10,000 Fine for Massachusetts Betting Violation
December 10, 2024 Marija D
The Massachusetts Gaming Commission (MGC) has unanimously voted to fine FanDuel $10,000 for a regulatory breach earlier this year. The violation involved three unauthorized future bets, totaling $11, placed on Boston College’s men’s basketball team between March 9 and March 13, 2024. These wagers, linked to Boston College’s potential performance in the NCAA tournament, contravened state laws governing sports betting on in-state college teams.
Massachusetts strictly prohibits wagers on local college teams unless they are actively competing in a tournament. The bets in question were accepted before Boston College had officially qualified for the NCAA tournament, violating these stipulations.
How the Violation Occurred
According to Zachary Mercer, general counsel for the Massachusetts Investigations and Enforcement Bureau (IEB), the issue stemmed from a manual error rather than a software glitch. While lifting betting restrictions on Boston College’s participation in the ACC Tournament, a FanDuel employee inadvertently allowed NCAA tournament bets as well.
FanDuel self-reported the error, providing all relevant details to the Massachusetts Gaming Commission in June. This transparency likely played a role in shaping the commission’s response.
The MGC commissioners unanimously approved the $10,000 fine but acknowledged the relatively minor nature of the violation. Commissioner Nakisha Skinner expressed the need for future penalty considerations to for the severity and context of infractions.
As far as Skinner pointed out, the incident involved three wagers for a total of $11, adding that penalties should be proportionate to the actual circumstances of the non-compliance issue.
Calls to Revisit Regulations
Commissioner Brad Hill raised the question of whether the regulation FanDuel violated should be reconsidered. Hill noted that fans of high-ranking college teams, such as those in the top 10, are often confident in their participation in tournaments like March Madness. He suggested the MGC explore allowing future bets on such programs, even before official qualification.
Chair Jordan Maynard agreed this topic warranted further discussion. Currently, bettors in Massachusetts can place future wagers on NCAA tournament outcomes for teams outside the state but remain restricted from betting on local college teams until tournament participation is confirmed.
Boston College did not participate in last year’s NCAA tournament, instead competing in the National Invitation Tournament. This historical context highlights the challenge of balancing sports betting regulations with fan expectations.
As discussions about potential regulatory changes continue, the FanDuel incident serves as a reminder of the complexities inherent in maintaining compliance while catering to evolving betting trends.
Source:
”FanDuel fined $10K for improper sports bets in Massachusetts”, cdcgaming.com, December 08, 2024.
This seems like a bit of an overreaction for $11 worth of bets. While I understand the need for strict enforcement of rules, it feels like a $10,000 fine for such a minor violation might be excessive. At least FanDuel self-reported the mistake, which shows some ability on their part. Maybe the commission should focus on revising these regulations, especially for cases like top-ranked teams where the outcome is almost a given. What do others think? Is this penalty fair, or is it too harsh?