The pinnacle of the Massachusetts Gaming Fee is warning in opposition to potential “vital impacts” that would stem from issuing an uncapped variety of short-term cell sports activities wagering licenses, saying that almost all of these operators will likely be compelled to close down inside a yr.
Underneath the brand new state regulation, the variety of cell/on-line operator licenses untethered to a on line casino or simulcast is capped at seven, however no limits have been positioned on short-term licenses.
“It’s potential that a minimum of 30 entities will likely be competing for as much as seven final untethered class 3 licenses,” Gaming Fee Govt Director Karen Wells stated.
Permitting short-term sports activities betting operations earlier than a closing willpower is made on their full licenses poses monetary issues for regulators, operators and clients, and in addition presents client safety considerations for the general public, she stated.
“For these corporations that do enter the short-term licensee pool as a cell/digital operator, however don’t advance within the aggressive choice course of, as many as 76% will likely be required to close down their operations in Massachusetts as soon as the fee makes its closing determinations,” she stated.
If the fee opts to subject short-term licenses, she stated it must set up a regulatory course of for shutting down operators who aren’t chosen, however that is nonetheless anticipated to create quite a lot of issues.
For instance, short-term operators not chosen for a full license could have no approach of recouping their $1 million charge.
Clients who place bets for future occasions, such because the Tremendous Bowl or March Insanity, might be left weak if sports activities wagering operators shut down earlier than these occasions happen, Wells stated.
Commissioner Nakisha Skinner stated the dialog round short-term licenses was untimely, since sports activities betting laws and home guidelines, which need to be in place earlier than their issuance, haven’t been finalized.
No vote was taken. Fee members opted to hunt authorized steerage on whether or not the variety of short-term licenses might be capped, and if there might be a extra aggressive choice course of to forestall sweeping shutdowns when closing determinations are made.
“The thought of getting to subject notices to honorably working companies that didn’t occur to make our closing minimize is simply untenable to me,” stated Fee Chair Cathy Judd-Stein.