| Organization: | Office of the State Auditor |
|---|---|
| Date published: | August 28, 2025 |
Executive Summary
In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of certain activities of the Massachusetts Gaming Commission (MGC) from July 1, 2020 through June 30, 2023. When examining MGC’s employee settlements, we extended the audit period from July 1, 2018 through June 30, 2023. Additionally, when examining MGC’s sports wagering in the Commonwealth, we extended the audit period from March 1, 2023 through March 31, 2024.1
The purpose of our audit was to determine the following:
- Did MGC monitor the exclusion of minors and underage youths on the gaming floor in accordance with Sections 150.01 and 150.05 of Title 205 of the Code of Massachusetts Regulations (CMR)?
- Did MGC approve the sports wagering operators’ internal control plans (ICPs) to ensure that measures were in place to prevent minors and underage youths from placing sports wagers in accordance with 205 CMR 250.01(2)?
- To what extent did MGC ensure that marketing materials from sports wagering operators were not disseminated or distributed to individuals under the age of 21 or to individuals who signed up for the Voluntary Self-Exclusion (VSE) Program, in accordance with 205 CMR 256.05?
- Did MGC implement policies and procedures to support people affected by gambling addiction in accordance with 205 CMR 133.02(3)?
- Did MGC report all monetary employee settlement claims to the Office of the Comptroller of the Commonwealth (CTR) in accordance with 815 CMR 5.09 and CTR’s “Settlement and Judgments Policy”?
Below is a summary of our findings, the effect of those findings, and our recommendations, with hyperlinks to each page listed.
| Finding 1 | MGC did not monitor sports wagering operators’ dissemination and distribution of advertising materials before they were issued to the public, as required 205 CMR 256. |
| Effect | Overall, these incidents highlight a lack of monitoring compliance and the need for MGC to enhance its oversight of sports wagering advertising to safeguard public interests and promote responsible gaming behavior. |
| Recommendation | MGC should establish policies and procedures to ensure that all sports wagering operators’ marketing materials are reviewed before being disseminated and distributed to the public. By implementing policies and procedures, MGC can monitor controls to ensure that these policies are adhered to. |
| Finding 2 | MGC did not ensure that all GameSense agents completed training before assisting people affected by gambling addiction, as required by 205 CMR 133. |
| Effect | Without this foundational training, these agents may lack the critical insights needed to assist people affected by gambling addiction. This gap in training could ultimately hinder MGC’s efforts to educate and inform those at risk about the dangers associated with gambling, potentially exacerbating their vulnerabilities. |
| Recommendation | MGC should develop and implement policies and procedures to ensure that GameSense agents are being properly trained before assisting people affected by gambling addiction. |
| Finding 3 | MGC did not have an accountability process related to employee settlement agreements, including those containing non-disclosure, non-disparagement, or similarly restrictive clauses. |
| Effect | If MGC does not have an accountability process for handling employee settlement agreements, especially those containing non-disclosure, non-disparagement, or similarly restrictive clauses, then it cannot ensure that employee settlements are handled in an ethical, legal, and appropriate manner. If the MGC board of directors does not ensure adequate oversight regarding employee settlements, then the well-being and financial stability of MGC and its employees may be negatively impacted. Furthermore, public dollars could be abused to cover up harassment, discrimination, or other forms of misconduct, while protecting perpetrators of abuse. |
| Recommendation | MGC should develop, document, and implement a policy related to employee settlement agreements. |
In addition to the conclusions we reached regarding our audit objectives, we also identified issues not specifically addressed by our objectives regarding the interpretation of permitting emails to suffice as mailings to a physical address for complimentary services. See Other Matters for more information.
1. We extended the audit period from March 1, 2023 through March 31, 2024 because sports betting services began in March 2023.
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Open PDF file, 448.5 KB, Audit Report - Massachusetts Gaming Commission (English, PDF 448.5 KB)