• According to current Massachusetts state law, there are no restrictions on the number of temporary licenses that can be awarded to mobile sports betting providers. 
• The reason is the missing cap on the number of these licenses
• Consequently, the head of the Massachusetts Gaming Commission has brought attention to the potential consequences of continuing to issue an unlimited number of these licenses.

76% of MA Mobile Operators Foresee Blinds Closing Soon

The notification also mentioned that the majority of the state’s operators are anticipated to cease operations the following year. Currently, under the same regulation, mobile operators are eligible for a total of seven unlimited licenses unrelated to casinos or simulcasts. 

According to the executive director of the commission, Karen Wells, some thirty operators may soon be vying for category 3 untethered licenses.

Problems may develop if temporary sports betting businesses are given the go-ahead prior to a final decision on their full licensing status. The difficulties relate to financial complications that may be encountered by operators, customers, and regulators alike. 

In addition, the general public faces a greater threat to consumer protection. Wells stated that as many as 76% of prospective applicants for temporary licenses would fail to advance in the selection process and be compelled to close their businesses shortly thereafter.

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$1 Million Fee down the Drain

Mobile and online sports betting firms who obtain temporary licenses but are refused a full license will forfeit their $1 million licensing cost. According to Wells, if the Gaming Commission decides to continue giving these temporary licenses, they will need to establish a new set of rules. The new regulations would govern how mobile operators will be shut down if they do not make the list of fully-licensed companies.

In addition, there is a potential issue with bettors who wish to wager on upcoming events through operators with a temporary license that will be compelled to close before the corresponding games begin.

Chairwoman Cathy Judd-Stein noted that the idea of sending warnings to “honorably operating enterprises” that did not make the shortlist was “untenable.” 

Commissioner Nakisha Skinner deemed the discussions on non-permanent licenses “premature” in light of the fact that legislation on sports betting and house rules have not been finalized. This week, Judd-Stein praised a UMass analysis that outlined the benefits of legalizing sports betting in the state.