Bay State regulators approved a fine on Thursday for Fanatics Sportsbook after a futures wager on a game involving a Massachusetts college was placed with the up-and-coming operator.
The Massachusetts Gaming Commission (MGC) voted 4-0 to impose a $10,000 “civil administrative penalty” for Fanatics, which took a $50 bet on the Fenway Bowl played by Boston College and SMU in December.
While Fanatics discovered the bet before the game was played, which allowed the operator to cancel it and refund the money to the customer, Massachusetts does not permit wagering on in-state colleges unless they are participating in a tournament with four or more teams.
So, even though the stakes were relatively low, Fanatics reported itself to the regulator and triggered the process that led to Thursday’s fine.
The golden rule
Fanatics told the MGC that a toggle switch allowing or disallowing collegiate wagering was erroneously turned on by a new employee and that it did not conduct a second level of verification. However, the commission heard Thursday that steps have been taken to fix the situation.
The in-state college rule has been an ongoing issue for the MGC as it polices Massachusetts sports betting, as several operators have run afoul and received fines.
For example, the state's three commercial casinos were sanctioned last summer for offering wagering on state colleges and were penalized similar amounts to the fine Fanatics received.
“The goal of the commission … was to make sure that we set the goalposts and that once the goalposts were set it was followed,” interim MGC chair Jordan Maynard said during the commission’s meeting on Thursday. “And I see that here.”
