DraftKings Inc. remains a favorite to earn a legal sports betting license in its home state, as the Boston-based gaming company has had its application for a mobile-wagering permit advanced by Massachusetts regulators.
The Massachusetts Gaming Commission (MGC) continued its series of licensing hearings on Wednesday by reviewing the application filed by DraftKings, one of the biggest operators of online sports betting sites in the United States.
DraftKings is pursuing one of seven “untethered” licenses for mobile sports betting in Massachusetts, and the Boston-headquartered company was quick to point out its ties to the state to regulators.
While DraftKings offers online sports betting in 20 states, plus the Canadian province of Ontario, it remains a "local company" in many ways, chief executive Jason Robins told regulators on Wednesday.
“We remain headquartered in Boston, we're still a founder-led company, and all three of us live in Massachusetts,” Robins said. “We have more employees in Massachusetts than any other location.”
Commissioners heard that DraftKings employs more than 1,300 people in the state. That significant presence, and the potential of more to come, resonated with the Massachusetts regulators.
“The fact that you are here in Boston, you’ve heard the commission say it's a pleasure to see that when we know that the legislature always cares about the economic engine of gaming,” MGC Chair Cathy Judd-Stein said during Wednesday’s meeting.
Home cooking
That hometown edge helped DraftKings with its application, with the MGC members agreeing on Wednesday that the company had met the criteria for an online sports betting license.
But, as with other operators, DraftKings was not given a free pass by the MGC. Commissioners spent considerable time inquiring about more sensitive subjects, such as data breaches, some of which had to be discussed in a closed-door, “executive” session.
There were questions about recent trouble that DraftKings ran into in Ohio, where state regulators are proposing to fine the company in connection with two alleged cases of advertising infractions.
The Ohio Casino Control Commission announced on January 5 that it was proposing to fine DraftKings and two other bookmakers for ads that allegedly violated rules requiring clear and conspicuous communication of problem-gambling resources, among other things. The OCCC also alleged in late December that DraftKings had mailed advertisements to people under 21, another no-no.
DraftKings has a right to a hearing and due process regarding the two regulatory matters. Company representatives opted on Wednesday to discuss any remedial measures taken by the company in the closed sessions with MGC members.
Remarks from DraftKings CEO Jason Robins help kick off today's meeting of the Massachusetts Gaming Commission, as the online gaming company is seeking one of the state's seven mobile sports wagering licenses. Boston-based DK is playing up its Massachusetts ties early and often. pic.twitter.com/xzkeeMOxtZ
— Geoff Zochodne (@GeoffZochodne) January 11, 2023
Still, Wednesday’s approval for DraftKings keeps it on track to launch online sports betting in Massachusetts in early March, when the MGC is aiming for mobile wagering to begin.
Regulators have advanced three other “untethered” operators as well: Bally Bet, Betr, and FanDuel. The tethered operators will be subject to a group evaluation next week before they can apply for a temporary wagering permit.
There are also eight “tethered” permits for mobile sports betting available in the state that are connected to operators of brick-and-mortar gaming facilities, such as casinos. The MGC has given approvals to four “tethered” operators: Barstool Sportsbook, BetMGM, Caesars Sportsbook, and WynnBET.
