DraftKings Begins Process To Request Full Five-Year Massachusetts Sports Betting License

• The Massachusetts Gaming Commission today held an adjudicatory hearing for DraftKings
• The MGC evaluated and discussed DraftKings’ durable suitability for a full five-year license
• No vote was taken today and the hearing will reconvene in February

DraftKings is seeking a full five-year sports betting license from the Massachusetts Gaming Commission and began the process today during a more than five-hour adjudicatory hearing to determine the operator’s suitability.

Despite the majority of the day’s hearing taking place behind the closed doors of an executive session, the Investigations and Enforcement Bureau (IEB) did publicly recommend the company be approved for a full license, contingent upon several qualifiers.

“You provide a great service to the commonwealth of Massachusetts, which is keeping people from the illegal market,” MGC Chair Jordan Maynard said.

Working With Temporary License Since 2023

DraftKings is one of seven sports betting platforms in the commonwealth to operate with a temporary category 3 sports betting license. DraftKings was approved for its temporary license in February 2023 and received its certificate on March 10, 2023, launching on the same day.

The MGC today started the process of publicly evaluating the company’s durable suitability for a permanent five-year sports betting license. Zachary Mercer, IEB general counsel, revealed early in the meeting that the bureau recommended DraftKings’ receive the license, but its recommendation is contingent upon the company addressing several concerns that came up in the IEB’s investigation.

To receive the full license, DraftKings will have to address the following:

• Provide updated fingerprints for several of its qualifiers
• In the IEB’s investigation, it was revealed DraftKings has a high-risk deficiency in one of its internal controls. It must remedy this deficiency within six months
• DraftKings must provide an update within one year on its durable suitability, which includes status of its civil litigation and regulatory discipline matters, and the company’s plan to reduce their frequency

Michael Banks, a civilian investigator for the IEB, reported DraftKings has committed over 50 regulatory violations in its licensed states, but is currently in good standing with each one.

Addressing Concerns Before Approval

After one of the lengthy executive sessions during the hearing, Maynard revealed that the MGC had several concerns with DraftKings that stemmed from the IEB’s report. He gave no details as to what they concerns were, but asked the MGC to seek additional information from audit and consulting firm RSM US before moving forward.

RSM US will address these concerns within 60 days with the MGC. The parties will reconvene in February to continue the hearing.

This durable suitability process will likely take place in the same way with the six other operators working with temporary licenses in the state. These include:

• Bally Bet
• BetMGM
• Caesars Sportsbook
• ESPN BET
• Fanatics Sportsbook
• FanDuel