Applications to Massachusetts Regulator Over Prediction Markets Rising

A spokesperson for the Massachusetts Gaming Commission (MGC) said the commission has received dozens of complaints about platforms it has no authority to oversee. According to the spokesperson, these emails go to a general inbox. In its response, the commission states that it does not regulate prediction markets and refers citizens to the Commodity Futures Trading Commission (CFTC).

Commission Chair Jordan Maynard argued in his statement to Congress that the problem stems partly from appearances. According to Maynard, consumers cannot tell sports prediction markets apart from state-licensed betting sites. Maynard also said the commission has received requests for intervention regarding companies that have not applied for a license with the commission and do not comply with state rules.

The spokesperson could not provide an exact number, and it was not disclosed how many of the messages represent genuine customer disputes. The response did not name any companies or say whether the CFTC assists these individuals. It also appears the commission has not yet determined whether the complaints have ended in an investigation, a refund or another outcome.

Massachusetts has spent the last three years building a system to supervise licensed betting sites. According to Maynard's written testimony, 39 monetary penalty enforcement actions have been taken under this framework, and operators have paid the state more than $1 million.