Massachusetts Gaming Commission reopening sports wagering licensing process
The Massachusetts Gaming Commission has announced that it is reopening the state’s sports wagering licensing process. This declaration was made following a unanimous vote during the Commission’s 586th public meeting.
In a statement announcing the decision, it said that this was prompted by a request from Bet365, which the Commission said is seeking to apply for a Category 3 Sports Wagering Licence.
Massachusetts sports wagering licence categories
Detailing the state law, the Commission said that there are three categories of sports wagering licences in the state of Massachusetts, “each with defined caps” that the Commission was eligible to issue.
Category 1 licences for retail sports wagering at a casino, while Category 2 licences are for retail sports wagering at a racing facility. Meanwhile, Category 3 is for online or mobile sports wagering.
The Commission clarified that Category 3 licences can be “tethered” to a Category 1 or 2 licensee, or they can be untethered. Major operators DraftKings, FanDuel, and Bally Bet currently possess untethered licences in Massachusetts.
Applying for a Category 3 licence incurs a $200,000 application fee. If an application is accepted and a licence is provided, then operators are expected to pay a $5 million licensing fee to operate for a five-year term.
15 May notice deadline
The Commission continued that when sports wagering launched in the Commonwealth, sixteen companies had applied for various licence types. It added that three of those sixteen eventually withdrew, while one application was deemed incomplete, and a further two licensees later ceased operations in the state after receiving their licences.
It said that any companies which are interested in applying for a sports wagering licence are directed to submit a Notice of Intent in order to begin the licensing process.
The Commission concluded that it will be accepting submissions until the deadline of 15 May 2026, and added that it will establish a competitive evaluation process if Category 3 mobile-only licences exceed the number available.
Massachusetts, sports betting, and prediction markets
Commission Chair Jordan Maynard remarked that the decision to reopen the process comes at a unique time with regard to the state of prediction market positioning in the US.
As things stand, the Massachusetts regulator does not currently support prediction markets. This is a position which Maynard seems to stand by, as he commented that he is heartened that people still want to come into the state’s industry when prediction markets, “which we definitely don’t allow,” want to get into sports betting.
Maynard had been reappointed as Commissioner and redesignated as Chair of the Massachusetts Gaming Commission earlier in March. Through this term, which is his second, he is set to serve in the position of Commissioner for another five years.
The Commodity Futures Trading Commission (CFTC) has been engaging in legal action against various states in relation to prediction markets. It recently filed an amicus brief in the Massachusetts Supreme Judicial Court in the case of the Commonwealth of Massachusetts v. KalshiEx LLC.
At its core, this case is about Massachusetts believing that it has the right to enforce its state gambling laws against prediction markets.
The Attorney General of Massachusetts had alleged that Kalshi operates an online exchange in order to offer sports wagering under the guise of event contracts. Kalshi has not applied for and does not possess a sports wagering licence in Massachusetts.
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