Massachusetts Gaming Commission prohibits sportsbooks from offering prediction markets
Table of contents
- Massachusetts Gaming Commission bans licensed sportsbooks from offering sports-related event contracts in the state.
- Non-compliance could lead to license revocation and regulatory consequences tied to actions in other jurisdictions.
- The Commission reserves the right to further regulate event contracts beyond state borders in the future.
The Massachusetts Gaming Commission (MGC) has issued a formal prohibition preventing licensed sports wagering operators from offering or promoting sports-related event contracts, commonly known as prediction markets, within Massachusetts.
The November 2025 letter directed all licensees to comply, warning of potential license revocation for violations and signalling stricter oversight on emerging betting formats.
Regulatory directives on prediction markets
The letter from MGC Executive Director Dean Serpa highlights that sports wagering in Massachusetts is strictly regulated under Massachusetts General Laws chapter 23N.
“Wagering on sporting events may only be offered on authorized sports wagering platforms licensed by the Commission,” the letter states.
“In the event you offer sports-related event contracts in Massachusetts or direct patrons to such
event contracts being offered in Massachusetts, the Commission may take steps up to and
including revocation of your license.”
Operators are prohibited from offering these event contracts directly, through affiliates, or by directing patrons to such contracts in Massachusetts.
Consequences and requirements
The Commission warned licensees that offering or promoting such contracts within the Commonwealth could result in license revocation.
Additionally, regulatory penalties imposed by other jurisdictions related to prediction market operations may affect licensing decisions in Massachusetts.
Licensees must respond in writing within ten business days to confirm actions taken to ensure compliance.
Currently, seven online sportsbooks are available in the state: DraftKings, FanDuel, ESPN Bet, Caesars, BetMGM, Bally Bet, and Fanatics Sportsbook.
Future considerations
The letter clarifies that it does not currently address event contracts offered outside Massachusetts but reserves the right to regulate these in the future.
This approach aligns Massachusetts with other states addressing challenges posed by innovation in sports betting markets and helps maintain a tightly controlled legal gambling environment within the state.
Reference: Massachusetts Gaming Commission official letter dated November 13, 2025
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