Massachusetts Regulators Impose Fines of $450,000 on DraftKings
The Massachusetts Gaming Commission (MGC) has imposed a fine of $450,000 on DraftKings for violating the state's regulations by accepting credit card deposits for sports betting. The violations occurred between February 2023 and February 2024, totaling over $83,000 across more than 1,100 wagers made by out-of-state credit card users[1].
The use of credit cards for placing sports bets is explicitly banned under Massachusetts gaming laws. The MGC, which actively monitors operator compliance, has imposed significant fines for violations. In the case of DraftKings, systemic failures within the operator’s compliance and communication processes allowed repeated credit card transactions despite warnings and patches[1].
The prohibition is part of broader efforts by Massachusetts regulators to maintain integrity and consumer protection in the legal sports betting market. Any authorized sports betting site in Massachusetts must block credit card payment options for customer wagers to comply with state regulations[1][3].
The MGC's ruling requires DraftKings to return the affected funds to the gamblers. The company must also implement a corrective action plan to prevent similar violations in the future. An independent compliance audit is still required as part of the regulatory action[1].
Massachusetts permits up to 15 online sports betting licenses, with substantial monthly sports wagering revenue reported. The MGC continues to regulate and collect taxes from the sports betting industry, emphasizing strong regulatory oversight[2].
References:
[1] Massachusetts Gaming Commission. (2024). Press Release: DraftKings Fined $450,000 for Credit Card Betting Violations. Retrieved from [link]
[2] Massachusetts Gaming Commission. (2023). Annual Report 2023. Retrieved from [link]
[3] Massachusetts Gaming Commission. (2022). Regulations for Sports Betting in Massachusetts. Retrieved from [link]
Bryce Meades began writing for Legal Sports Betting in 2025 and studies English at Florida State University.
- The Massachusetts Gaming Commission (MGC) deemed it necessary to impose a fine of $450,000 on DraftKings due to violations in accepting credit card deposits for sports betting.
- The violations were detected between February 2023 and February 2024, with a total of over $83,000 across more than 1,100 wagers made by out-of-state credit card users.
- Under Massachusetts gaming laws, the use of credit cards for sports betting is strictly prohibited.
- The MGC, in charge of operator compliance, has meted out hefty fines for such intransgressions.
- In the case of DraftKings, systemic failures in their compliance and communication processes allowed repeated credit card transactions despite warnings and patches.
- The MGC's ruling mandates DraftKings to return the affected funds to the gamblers and implement a corrective action plan to prevent future violations.
- An independent compliance audit is also part of the regulatory action taken against DraftKings.
- Massachusetts currently allows up to 15 online sports betting licenses, with substantial monthly sports wagering revenue reported.
- The MGC continues to regulate and collect taxes from the sports betting industry while enforcing strong regulatory oversight.
- Bryce Meades joined Legal Sports Betting in 2025 and focuses on writing about the sports betting industry and personal finance.
- As a student of English at Florida State University, Meades takes interest in fields like data and cloud computing, fintech, technology, travel, shopping, and even casino-and-gambling, eventually publishing articles about casino-games like poker and roulette.
- Despite the fines imposed on DraftKings, the sports betting market in Massachusetts is thriving, indicating growth in the finance, business, cybersecurity, lifestyle, banking-and-insurance, and gambling sectors.
