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Two of eight mobile sports-betting operators had planned to exit Massachusetts within the next few weeks but now an exact date is still to be determined as regulators failed to approve their cessation plans.
The Massachusetts Gaming Commission (MGC) and representatives with Betr Holdings discussed the company's specific plans for exiting the market during a lengthy commission meeting on Thursday (February 1).
WynnBET also plans to cease mobile operations in the state, although Wynn will continue to offer a sportsbook at its Encore Boston Harbor casino.
Betr and WynnBET were also seeking waivers as they notified the commission less than 90 days prior to their planned cessation dates. Betr was seeking to cease operations on February 16 and WynnBET on February 23.
However, commissioners and staff had issues with how Betr planned to communicate with customers and how withdrawals would be handled within about two weeks. They also had questions around bonuses, deposits, vendor notification, and other issues.
Alex Ursa, head of gaming at Betr, told commissioners the company had notified its vendors on the same day as they notified the commission of their plans to withdraw from the state. He said Betr would get back to their vendors with a firm date once the plan is approved.
After more than an hour of discussion on Betr’s cessation application, MGC chair Cathy Judd-Stein tabled discussion on the requests until staff and both companies could meet to resolve all outstanding issues and come back with an updated plan for the commission to consider.
“I want to thank both operators,” Judd-Stein said. “We understand that this is a very big decision for your businesses. It is also really new territory for us. When we wrote the regulation for cessation, we probably had different scenarios in mind.”
Sports-betting operators in Massachusetts are required to inform regulators in writing at least 90 days before a shut down of operations is anticipated to occur, as well as the circumstances that lead to the cessation of operations.
The notice required shall be given regardless of whether the anticipated cessation of business is permanent or indefinite, and whether the cessation is through voluntary or involuntary dissolution, liquidation or bankruptcy, according to the regulation.
Upon receiving written notification, the commission can order the company to stop offering and accepting wagers within five business days or a longer period to be determined, or appoint a conservator to manage and operate the business until the intended closure date.
Judd-Stein noted that neither company followed the 90-day requirement but did submit a request for a waiver with their plans.
Betr’s decision to not renew its temporary sports-betting license in the state comes at the same time it announced its expansion in to Pennsylvania, Colorado and Kentucky. The company is currently live in Ohio and Virginia. Betr has applied for a sports-betting license in Maryland and is awaiting approval to launch in Indiana.
Betr had received a temporary license in Massachusetts last year and in a letter to regulators announcing its departure said it hopes “to receive the honor and privilege of re-entering this market at a later date.”
Both companies’ decision to exit the state comes about as a result of the market dominance of DraftKings and FanDuel.
WynnBET, the sports betting and iGaming platform for Wynn Resorts, confirmed last week that it would cease online sports betting in the state.
WynnBET announced last year its decision to withdraw from eight other U.S. markets. The company has already ceased operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia.
Its mobile sportsbook was expected to continue to operate due to its relationship with Encore Boston Harbor. At the time, parent company Wynn Resorts said the decision would allow it to focus WynnBET operations in states in which it operates land-based casinos, Massachusetts and Nevada.
WynnBET is still active in Michigan, Nevada and New York.
The moves by WynnBET and Betr to leave Massachusetts come after bet365, PointsBet and Betway all declined to follow through with launching, despite submitting initial applications for a license.
Companies are required to pay a $1m application fee for a temporary license, but then $5m for a full license.
No Props For Gatorade
During its meeting on Thursday, the commission also denied a request from staff for clarification on Super Bowl proposition wagers for the coin toss, the color of the Gatorade that might be poured over the winning head coach at the end of the game, and the length of the National Anthem.
“I just don’t feel any of these are appropriate,” said commissioner Eileen O’Brien.
Currently, the only prop bet allowed in Massachusetts on Super Bowl 58 between the Kansas City Chiefs and San Francisco 49ers is who will win the most valuable player award.
Separately, Fanatics Betting & Gaming requested, and the commission granted, the addition of the Professional Women’s Hockey League into the state’s betting catalog. But the commission denied a request by Fanatics on bets it described as “Player X Next Team” and “X Team’s Next Head Coach.”
Commissioner Bradford Hill said the bets were interesting, but Massachusetts was not yet ready for them.
“I don’t feel comfortable that the guardrails are in place,” Hill added.
