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Fanatics has ran into trouble in Massachusetts after regulators flagged another batch of illegal college wagers. A quick look at the case shows how one small override in a trading system keeps turning into a recurring headache for the operator.
Good to Know
Regulators in Massachusetts reviewed fresh data from the Investigations and Enforcement Bureau and decided to issue a $20,000 fine to Fanatics for taking wagers that the state does not allow. The ruling came after a vote on Dec. 4, following an inquiry that focused on how the operator handled markets tied to Boston College football.
The prohibited action covered bets placed between Sept. 15 and Sept. 20 of last year on a regular-season meeting between Boston College and Michigan State. State rules ban wagers on in-state college teams unless the event is part of a tournament, so the market should not have gone live at all. Yet 83 wagers slipped through, creating a combined handle of $3,325. That figure included straight bets and multis.
Regulators confirmed that losing wagers were voided and refunded, and winning wagers were honored. The flow of money stayed small, though the compliance issue raised deeper concerns about internal controls.
Commission documents pointed to a manual override by a trading team employee. That staff member no longer works for the company. Fanatics reported to regulators that a progressive discipline model now guides how the operator handles internal errors tied to betting markets.
The discussion among commissioners showed mixed views on whether the $20,000 penalty went far enough. Eileen O Brien stood alone in opposing the fine and argued that a pattern of previous violations should bring more than incremental increases. She said:
“The incremental increase of $5,000 per offense does not serve as an effective deterrent.”
Nakisha Skinner supported the fine but also pressed for more clarity on how the company plans to fix recurring issues in the same trading segment. Skinner requested a formal follow-up from Fanatics outlining what new controls and oversight steps will be added.
Massachusetts continues to examine various cases linked to noncompliant college wagering. The state has fast data on related activity because operators must report errors immediately under local rules. Regulators also keep a running view of market performance. In September, the MGC recorded $52.34 million in taxable sports betting gross gaming revenue and said overall collections since the January 2023 launch have reached more than $339.15 million.