DraftKings' Application Met with Favorable Response from Massachusetts Regulators
DraftKings, a renowned name in daily fantasy sports, has been operating in Massachusetts for several years, offering daily fantasy services, but has yet to market sports betting to residents in the state. The company, however, continues to expand its operations and secure licenses in various states.
Recently, DraftKings was awarded a five-year Category 3 Sports Wagering Operator License in Massachusetts, following suitability findings, and has also secured a direct mobile sports betting license in Missouri, set to begin operations on December 1, 2025. The company holds valid licenses in numerous jurisdictions, including New Jersey and Massachusetts.
In terms of regulatory standing, no recent or specific regulatory violations or enforcement actions against DraftKings were reported in the states of Illinois, Indiana, New Jersey, Ohio, or elsewhere in the information provided. The company emphasizes player protection and compliance, implementing identity verification, fraud protection, responsible gaming tools, and encryption protocols to safeguard information and ensure regulatory adherence.
However, the Ohio Casino Control Commission has flagged DraftKings, along with two other operators, for failures related to responsible gaming messaging and the use of the term "risk-free" for bets. The commission is currently reviewing applications from several operators, including DraftKings, and plans to revisit applications and announce initial approvals starting next Wednesday.
In Massachusetts, DraftKings received a positive verbal review during its Category 3 untethered sports wagering application review. Under the new state law, the commission can issue up to seven standalone mobile licenses, but only six companies have applied so far.
DraftKings has partnerships with the UFC and ex-fighter Conor McGregor, which are unique to the UFC as it does not allow its athletes to partner with sportsbooks. The company expects to hire 25 new employees in Massachusetts should it get licensed, and it expects to add more than three times that number of new jobs in the company at large.
Regarding workforce diversity, DraftKings representatives have been required to provide the Massachusetts Gaming Commission with "workforce and supplier diversity goals and overall vendor spend." However, it was noted that women represent about 26% of its workforce, which is below the numbers shared by other operators.
The review of Fanatics' application, the final tethered operator on the commission's docket, is ongoing. DraftKings will also need to update the Investigations Enforcement Bureau about a pending violation in Ohio. The company acknowledged violations around direct mail, licensing paperwork, and some reporting issues, but details of the new protocols and the handling of a recent data breach were discussed in executive session.
The commission noted past violations in multiple states, including Illinois, Indiana, New Jersey, and Ohio, with an investigation into proxy betting occurring in New Jersey. DraftKings has received a second notice of violation in Ohio in a month, and each operator could be subject to a $150,000 fine for the Ohio violations.
Despite these issues, DraftKings continues to expand its operations and partnerships, aiming to provide a secure and compliant sports betting experience to its users.
- DraftKings was awarded a five-year Category 3 Sports Wagering Operator License in Massachusetts and has secured a direct mobile sports betting license in Missouri.
- The company emphasizes player protection and compliance, implementing measures like identity verification, fraud protection, responsible gaming tools, and encryption protocols.
- However, the Ohio Casino Control Commission flagged DraftKings, among others, for failures related to responsible gaming messaging and the use of the term "risk-free" for bets.
- In the field of sports and sports betting, DraftKings has partnerships with organizations like the UFC and ex-fighter Conor McGregor.
- DraftKings has been required to provide diversity goals and overall vendor spend to the Massachusetts Gaming Commission regarding its workforce diversity.
- Despite regulatory concerns in various states, such as Ohio and New Jersey, DraftKings continues to expand its operations and aims to provide a secure and compliant sports betting experience.
