Massachusetts Officials Implement New Data Protection Regulations
Gaming authorities in Massachusetts have announced new regulations that aim to protect users' privacy in the state's sports betting industry.
According to the Massachusetts Gaming Commission, these newly-adopted rules require sportsbooks to limit the collection, usage, and sharing of confidential or personally-identifying customer information. Operators must obtain explicit consent from users before using such data for any purposes beyond running their betting service or adhering to legal obligations.
Moreover, the regulations forbid sportsbooks from utilizing personal information to promote gambling that might encourage irresponsible behaviour. For instance, they cannot send advertising material to customers who have activated play management or "cooling-off" options to limit their betting activities.
In addition, sportsbooks are required to develop and maintain privacy safeguards, as well as investigate and notify the public of any potential data breaches.
Support from the AG's Office
The Massachusetts Attorney General's office voiced its support for the new rules, emphasizing the importance of preventing betting platforms from promoting addiction.
"Data must not be used to promote addiction to, or excessive play on, the platforms," a spokesperson wrote in a comment on the proposed regulation. "In particular, operators should not encourage inactive bettors to return to the platform, regardless of how long the bettor has been inactive. Such 'nudging' to return would contradict efforts to prevent and minimize addictive behaviour."
The five commissioners unanimously approved the rules at a public meeting of the MGC.
Sportsbook Operators' Concerns
However, sportsbook operators have voiced concerns regarding certain aspects of these regulations, such as the potential conflicts with upcoming statewide privacy laws. A representative from DraftKings informed the commission that the regulation "is likely to present significant conflicts with data privacy legislation that will be adopted in the Commonwealth." FanDuel, Penn Sports Interactive, Bet MGM, and WynnBet also submitted comments expressing reservations about the new rules.
State lawmakers have introduced various privacy bills this year that would restrict how industries, including sports betting, utilize consumer data. There's an anticipated adoption of legislation in the near future based on those regulations in California and other regions.
Commissioners confirmed that, if necessary, gaming regulators could address any potential conflicts with these new regulations and the upcoming state laws.
"I don't think we need to wait for the legislature to come up with new laws when we have the ability to do it through ourselves with regulation," said Commissioner Bradford Hill at the meeting. "And I think moving forward at this time would be the prudent thing to do."
Commissioner Nakisha Skinner suggested considering extending these regulations to retail gaming establishments, although she noted that this was a discussion for a later date.
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Source: www.casino.org
