DraftKings' application meets approval from Massachusetts regulators
In Massachusetts, DraftKings, the Boston-based sports betting giant, has secured a full five-year Category 3 Sports Wagering Operator License, granted by the Massachusetts Gaming Commission (MGC) on July 25, 2025. This license allows DraftKings to operate legally with regulatory oversight in the state [1].
However, in August 2025, Massachusetts regulators fined DraftKings a substantial $450,000 for repeatedly accepting credit card bets, a practice prohibited under state regulations [2][4]. The violation occurred between 2023 and early 2024, and the company took nearly a year to fully remedy the issue. The MGC required DraftKings to return all disputed bets, conduct an independent audit of its payment systems, and implement a corrective action plan [2].
Despite this fine, the MGC simultaneously renewed DraftKings' permanent license, reflecting continued regulatory confidence [2]. The company is currently cooperating with regulators to address these issues and ensure compliance moving forward.
Elsewhere, DraftKings operates fully licensed sportsbooks in Illinois, Indiana, New Jersey, and Ohio, with no major unresolved regulatory compliance violations reported in the latest searches [3]. However, the MGC has noted past violations in multiple states, including Illinois, Indiana, New Jersey, and Ohio, with an investigation into proxy betting occurring in New Jersey [3].
Regarding diversity within the company, women represent about 26% of DraftKings' workforce, a figure that the MGC has identified as lower than those shared by other operators [3]. DraftKings executives have stated they will work to improve the representation of women and Black employees.
The MGC is currently reviewing applications from several operators, including Bally's, FanDuel, Betr, DraftKings, Digital Gaming, and PointsBet for standalone mobile licenses [3]. Five other companies - Barstool Sportsbook, BetMGM, Caesars Sportsbook, Fanatics, and WynnBET - have applied for tethered digital licenses [3].
Commissioner Eileen O'Brien has raised concerns about the "free bet" language used by DraftKings in some of its advertising and marketing, and DraftKings representatives have stated they will comply if the MGC were to ban such language [3].
In Ohio, the Ohio Casino Control Commission flagged DraftKings and two other operators last week for failures related to responsible gaming messaging and the use of the term "risk-free" for bets [3]. DraftKings executives maintain that anything labeled a "free bet" is truly free, with no additional conditions on the consumer.
DraftKings is the only Massachusetts-based operator applying for a license and expects to hire 25 new employees in the state should it get licensed, with more than three times that number of new jobs expected at the company at large [1]. The MGC has given a verbal approval to DraftKings during its Category 3 untethered sports wagering application review, but the commission will not vote during the review period, which extends through next week [1].
The MGC began its review of the Fanatics application last Thursday and will continue its review on Thursday at 8 a.m. [1]. Details of how DraftKings is addressing a recent data breach were discussed in executive session [1].
In summary, DraftKings is currently licensed and operational under strict regulation in Massachusetts, following a significant fine for payment processing violations. It has demonstrated cooperation with regulators through audits and corrective actions. There is no recent evidence of ongoing regulatory penalties in Illinois, Indiana, New Jersey, or Ohio related to DraftKings’ operations.
Read also:
- Tobacco industry's suggested changes on a legislative modification are disregarded by health journalists
- Elon Musk praises JD Vance's debate performance against Tim Walz
- Unveiling the Real Deal: Exposing the Facts About Panasonic Sound Bar Systems
- The True Implications of Lab Testing for Your Container of Manuka Honey
