MGM Springfield Awarded Massachusetts Sports Betting License

The Massachusetts Gaming Commission on Monday agreed to award MGM Springfield a Category 1 sportsbook license.  This allows them to operate a retail sportsbook.  A decision on a Category 3 license for its BetMGM mobile brand was still being considered.  The retail sportsbook could begin operating as early as January and, should the BetMGM vendor license be approved, mobile can begin in time for the NCAA Men's Basketball Tournament in March.

The company partners with Entain to offer the mobile sports wagering arm, and that relationship has raised eyebrows with regulators.  Numerous questions were asked during the Monday hearing.

While it does not appear as if commissioners are aware of Entain's less-than-stellar reputation (more on that in a moment), confusion over MGM Resorts relationship with Entain and who is actually running the BetMGM brand left commissioners with a sour taste in their mouths throughout the application review phase. 

Entain this past summer was handed down the single biggest fine in industry history for failure to adhere to social responsibility and lack of proper anti-money laundering (AML) safeguards.

Entain CEO, Kenneth Alexander released a statement following the punitive measures: “Soon after the acquisition of Ladbrokes Coral following meetings and ongoing enquiries by the Gambling Commission, it became clear to GVC that there had been historic compliance failures within certain areas of the operations. Working closely with the Gambling Commission and an independent firm of solicitors, GVC facilitated a thorough, prompt and far-reaching investigation, which has led to today’s settlement. These historical failings were unacceptable and since the acquisition, I have overseen a systematic review of the enlarged Group’s player protection procedures and the individuals responsible for these problems have exited the business. I am confident that, we now have in place a robust and industry leading approach to player protection.

“More broadly, GVC is determined to take the lead in the critical area of responsible gambling, and is taking decisive, tangible action across a range of initiatives. This includes our recent voluntary commitment to increase funding for research, education and treatment projects ten-fold, as well as our decision to end all sponsorship deals that promote our brands on UK football shirts or on pitch-side advertising hoardings. However, there is more to be done and social responsibility and we will continue to work with other gambling companies and the Gambling Commission to raise operating standards.”

BetMGM just last week sent shockwaves through the industry after its social media account posted footage of a professional wrestler pushing a wheelchair bound man down a flight of stairs, at the same time Massachusetts commissioners were reviewing the sports betting application no less.

Ultimately, commissioners postponed their decision after that company too often referred the reader to a separate document from the BetMGM website.

Commissioner Nakisha Skinner made it abundantly clear her displeasure with the process, noting that much of the information needed to “completely and comprehensively” consider MGM Springfield’s bid for a license was “essentially missing.”

“There are significant references to the BetMGM application, and it will be a few more days until we get to that particular application,” she said. “I’m happy to continue on with the discussion, I think it’s necessary. And in terms of a full evaluation and deliberation on the application, I’m just not prepared to do that today without having the benefit of the review of the BetMGM application.”

MGM Springfield was highly likely to be granted the retail license due to that property's mostly stellar reputation.  BetMGM would still act as its retail vendor however. 

Last week the commonwealth delayed a decision on Penn National's Barstool Sports, citing that company's association with controversial spokesperson and company founder Dave Portnoy. 

Mr. Portnoy's exploits on social media are well documented.  He has regularly bragged about enduring significant gambling losses in the past.  A fine was also handed down against Penn National by Ohio gambling regulators for that company's apparent promotion of gambling on college campuses.  

WynnBet, in partnership with Encore Boston Harbor, was granted the first sports betting license this past week.

- Gilbert Horowitz, Gambling911.com