Fanatics Receives Fine Sports Betting

Fanatics Receives Fine Over College Betting Incident

By Blake Roberts Founder & Editor in Chief Updated: 22 July 2024

Blake Roberts Founder & Editor in Chief

Blake Roberts is the founder of Betting.US and is currently heading the creative team as Editor in Chief. Born and raised in Morgantown, West Virginia, Blake is a great sports fan, with football and basketball being his favorite. He’s our trusted voice for all betting-related matters.

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It has been reported that the Massachusetts Gaming Commission has imposed a $15,000 fine on Fanatics Betting and Gaming. The fine was in relation to a prohibited wager on an in-state college team. Set by the Investigations and Enforcement Bureau, the fine was unanimously approved by the MGC in a 4-0 vote during a recent public meeting.

The incident took place on December 13, 2023, when a bettor placed a $2 five-leg parlay that included a wager on a Boston College men’s basketball game. Massachusetts regulations strictly prohibit betting on non-tournament college games involving in-state teams. Before the game started, Fanatics picked up on the error and canceled the Boston College leg of the parlay. The parlay ultimately lost.

An investigation summary presented by IEB counsel Zachary Mercer revealed that Fanatics Betting and Gaming discovered the mistake ahead of the event and proactively canceled that portion of the bet.

Mercer said that as per the recommendation

…the IEB investigated the matter, had further discussions with FBG concerning the causes of the incident, and reviewed the remedial measures taken. During the IEB’s review, no additional information was uncovered that would have materially changed the nature of the noncompliance as originally presented to the commission.

He added that FBG was ‘responsive and communicative’ all through the process, and that company officials had agreed with the recommendation from the IEB.

The IEB formally reported the error to the MGC on February 1, 2024, leading to a thorough investigation.

Compliance History Taken into Consideration

It was revealed that the sportsbook’s compliance history played a part in determining the $15,000 fine, according to reports. In May 2023, Fanatics was fined $10,000 for a similar violation. In that incident, a $50 wager was placed on a prohibited college football bowl game that involved Boston College.

That bet was also canceled by the sportsbook operator before the start of the game, and the customer received a refund. This previous fine was considered by regulators when deciding on the latest penalty.

Officials pointed out that this incident is not an isolated case in the state. In July 2023, several casinos in the state were fined a total of $50,000 between them for similar breaches of in-state college betting regulations. These were all put down to technical errors.

Potential Noncompliance Issue with Caesars Sportsbook

It has also been reported that the MGC is looking into a possible noncompliance issue with Caesars Sportsbook. It is reported that the sportsbook failed to meet the state’s knowledge-based authentication question requirements between September 1st, 2023, and April 9th, 2024.

Some commissioners called for an adjudicatory hearing regarding this, but others have asked for further investigations to ascertain whether Caesars ignored the regulation or purpose. The commission has asked the IEB to discuss the matter with Caesars before making a decision about a hearing.

In the meantime, NCAA President Charlie Baker is calling for a nationwide ban on player prop wagers that involve student athletes. There are also some lawmakers who are looking for modifications to be made to state regulations.