Overview
The Massachusetts Gaming Commission (MGC) was established by Section 3 of Chapter 23K of the Massachusetts General Laws as the oversight agency charged with monitoring gaming establishments.2 On November 22, 2011, the Governor signed the Expanded Gaming Act into law. This act was created to generate new revenue for the Commonwealth and to increase economic growth in surrounding communities. Enacting the Expanded Gaming Act in the Commonwealth was expected to create thousands of jobs for Massachusetts residents in the areas of construction, hospitality, and tourism.
According to MGC’s website, its mission is “to create a fair, transparent, and participatory process for implementing the expanded gaming law.”
MGC is composed of five full-time commissioners, one of whom serves as the chair. The Attorney General, the Treasurer and Receiver General, and the Governor (whose appointee serves as the chair) each appoint one commissioner outright, then appoint the remaining two commissioners jointly. This five-person appointed body establishes oversight and management of the licensing and regulatory processes for two casinos, MGM Springfield and Encore Boston Harbor (EBH), and the statewide slots parlor, Plainridge Park Casino (PPC) through a series of regulations. Additionally, MGC is tasked with creating and overseeing the regulatory framework of the Commonwealth’s sports wagering industry, which includes 13 sports wagering operators licensed to conduct online and in-person sports gambling within the Commonwealth.
MGC’s Research and Responsible Gaming Division develops and implements responsible gaming programs, including the Voluntary Self-Exclusion (VSE) Program. These programs provide specific structures to promote responsible gaming and ethical, responsible patron behavior. MGC’s Investigations and Enforcement Bureau (IEB) receives intelligence on gaming establishments and investigates any suspected violations described under Chapter 194 of the Acts of 2011 (known colloquially as the Gaming Law). The Gaming Enforcement Unit (GEU) at the Massachusetts State Police works with IEB to investigate any activity at MGM Springfield, EBH, and PPC. MGC performs all regulatory duties and responsibilities related to the Massachusetts horse-racing industry.
MGC’s office is located at 101 Federal Street in Boston. MGC had 189 full-time employees as of June 30, 2023. MGC’s operating costs are funded through various assessments, such as the Massachusetts Racing Development and Oversight Trust, Community Mitigation, Race Horse Development, Gaming Revenue Fund Daily Tax, and Payments to Cities and Towns for Local Racing Tax Revenue. State appropriations for MGC were approximately $721,350, $721,350, and $1,112,590 in fiscal years 2021, 2022, and 2023, respectively.3
Exclusion of Minors and Underage Youths from Gaming Floors
According to 205 CMR 138.02, the three Massachusetts gaming establishments must have internal control plans (ICPs) to ensure that minors and underage youths cannot enter the gaming establishments’ gaming floors, under Chapter 23K of the General Laws and Title 205 of CMR. The gaming establishments must prepare and submit their ICPs regulating minors and underage youths before commencing operations, which are approved by MGC and its executive director. Gaming establishments’ ICPs are updated as needed and when the gaming establishments deem it necessary. The commissioners or the executive director may revisit any provision of the internal controls at any time, direct adjustments if required, and provide for a reasonable implementation period to ensure that a robust system of internal controls is in effect. Upon approval by the executive director, the gaming licensee is issued written evidence of the approval of its internal controls, including any associated conditions.
When entering a gaming establishment, a person must first go to the security booth, where a security guard is present, before gaining access to the gaming establishment’s gaming floor. Anyone appearing to be under the age of 30 is required to present valid identification to the security guard. The physical identification card will be placed in the VeriDoc system4 for verification. If the identification card is valid, the system displays a green indicator; otherwise, it displays a red indicator.
The gaming establishments must actively monitor all areas of the gaming floor to ensure that minors are not present. If a minor is found on the gaming floor, then the gaming establishments must immediately report the incident to the MGC’s IEB. Additionally, the gaming establishments are required to submit a detailed Underage Incident Report to the IEB by the 10th of every month.
These Underage Incident Reports must include specific information, such as the total number of individuals under 21 years old who were found in the gaming area, including near table games, slot machines, or other electronic gaming devices. The report must also note any minors consuming alcoholic beverages and any individuals under 21 who were turned over to the appropriate law enforcement authorities or escorted away from the gaming premises. Gaming establishments are required to report incidents regarding minors and underage youths to MGC in order maintain their gaming licenses. If any incident regarding minors and underage youths is not reported, then the gaming establishment in question could be sanctioned, which includes the potential loss of the establishment’s gaming license.
Sports Wagering Across the Commonwealth
On August 10, 2022, the Governor signed an act legalizing sports wagering within the Commonwealth. Following legislative approval, the inception of sports betting services began in March 2023. At least 60 days before commencing operations, a sports wagering operator must submit its proposed ICP to MGC.
MGC must refer the proposal submitted under 205 CMR 138.02(1) to the executive director. The executive director reviews the submission to ensure compliance with Chapter 23K of the General Laws, 205 CMR 138.00, and any other applicable sections of Title 205 of the CMR.
According to MGC’s contract with Gaming Laboratories International, LLC (GLI), dated October 13, 2022, GLI provides consulting services for the review of internal control standards for entities applying for sports wagering licenses. This review and consultation includes the following:
- Review of operator-submitted [Internal Control Standards (ICS)] for compliance with MGC regulations and Minimum Internal Control Standards (MICS).
- An evaluation of the ICS framework and controls to ensure compatibility with MGC audit requirements and workflow.
- Review each control standard to evaluate if the control design is adequate to meet the control objective in the MICS or other applicable regulations.
At the conclusion of the review, a detailed report is provided to MGC, summarizing the methods of testing and the test results.
GLI ensures that the sports wagering operator application framework complies with all CMR requirements. This includes monitoring to prevent minors and underage youths from using the platform. Additionally, GLI ensures that the list of VSE individuals from the MGC is accessible to sports wagering operators within 24 hours of the sign-up of a person affected by gambling addiction.5 Furthermore, GLI tests the location framework to confirm that individuals placing bets with the sports wagering operators are within Massachusetts’s jurisdiction. After testing is completed, GLI provides MGC with a certificate of all completed work and the results.
According to MGC officials, after the review, the executive director either approves the submission or notifies the gaming licensee, in writing, of any deficiencies. This notification may also include recommendations and/or required changes intended to ensure the implementation of a robust system of internal controls.
The commissioners or the executive director may revisit any aspect of the internal controls at any time and make direct adjustments if necessary, allowing for a reasonable implementation period to ensure that a robust system of internal controls is in place. Once the internal controls system is approved by the executive director, the gaming licensee receives written confirmation of this approval, including any associated conditions.
At least 15 business days before making any changes to the approved internal controls, a gaming licensee must submit the proposed change, along with an explanation and new certifications6 from its chief legal and financial officers, consistent with 205 CMR 238.02(7)(i) and (j), to the commissioners. The commissioners refer the proposed change to the executive director, who reviews it for compliance with 205 CMR 238.00. Changes to the internal controls are generally permitted if the proposed change does not weaken the administrative, accounting, or physical controls.
After the review, the executive director either approves the proposed change or explains to the gaming licensee why the proposal does not comply with 205 CMR 238.00. The gaming licensee can appeal the executive director’s determination to the commissioners, which resolves the issue. Approved changes must be maintained as part of the internal controls.
Internal controls cannot be modified without the approval of the executive director or the commissioners. However, if the executive director does not object or respond in writing within 15 business days of receiving the submission, then the gaming licensee may proceed with the proposed change, subject to further direction from the executive director by 205 CMR 238.02(3).
The compliance officers working within MGC’s Sports Wagering Division are responsible for closely monitoring all operators’ betting platforms. The compliance officers’ duty is to identify any wagers that fall outside the boundaries set by the official Massachusetts Sports Wagering Catalog, which was last approved and updated by MGC on February 6, 2025. The official wager categories include specific bets that are prohibited due to regulatory exclusions. These exclusions include any collegiate sports or athletic events that occur within the Commonwealth, as well as any event overseen by the government of Russia, the government of Belarus, or the Chinese Football Association.
If it is discovered that a sports wagering operator accepted an unauthorized wager, then sports wagering operators are obligated to promptly notify MGC. Furthermore, the sports wagering operator must take immediate action to cancel these unauthorized bets and initiate the process of refunding all affected wagers in accordance with the regulations outlined in 205 CMR 247.03(11). If a sports wagering operator accepts a wager for a prohibited event, then it is reported to MGC’s IEB, which in turn reviews the prohibited event and provides any recommendations or sanctions to the commissioners for approval. Sports wagering operators are required to report incidents regarding unauthorized wagers to MGC in order maintain their gaming licenses. If any incident regarding unauthorized wagers is not reported, then the gaming establishment in question could be sanctioned, which includes the potential loss of the establishment’s gaming license.
Sports Wagering Advertising Toward Minors
According to 205 CMR 256.05(1), advertising and promotional materials for sports wagering operators must clearly state that participants must be 21 years of age or older. Operators are prohibited from targeting individuals under 21 in any marketing efforts. Additionally, this CMR states the following:
- No materials should feature images, endorsements, or language appealing to those younger than 21.
- Advertising is prohibited in media where 25% of the audience may be under 21 unless strict age controls exist.
- Promotions cannot occur at events aimed at minors or locations like schools and college campuses.
- Sports Wagering logos or branding should not be used on products intended for individuals under 21.
According to MGC officials, MGC’s Sports Wagering Division received a report, compiled by the Communications Division, on sports wagering advertising conducted by sports wagering operators across various social media platforms and channels. These reports are submitted to the compliance officers for their review, which takes place weekly. Currently, MGC does not monitor or review the marketing materials of sports wagering operators before they are disseminated and distributed to the public.
VSE and Responsible Gaming
According to 205 CMR 133, people affected by gambling addiction may voluntarily bar themselves from online sports wagering operators and from entering the gaming areas of MGM Springfield, EBH, and PPC. They can do this by completing an application on the GameSense7 website or in person with any designated agent.8 Once the application is completed, a designated GameSense agent forwards it to the VSE Program manager at MGC’s Research and Responsible Gaming Division, who maintains the VSE list. The VSE Program manager approves the person’s addition to the VSE list. The VSE Program manager then distributes the VSE list to licensees daily and sends it to GameSense supervisors and IEB. Sports wagering operators also share the VSE list with their marketing departments to ensure that each person on the list is removed from both the marketing and player reward promotion.
MGC maintains lists of individuals who requested to be excluded from sports betting within the Commonwealth to reduce and mitigate the effects of gambling addiction. Individuals on the VSE list are prohibited from participating in any form of legalized gambling in MGC’s jurisdiction and are prohibited from collecting any winnings or recovering any losses resulting from violation of the restrictions or accepting any complimentary gifts or services or any other thing of value from a Commission-licensed facility, retail location, or mobile wagering platform. If an individual has a pending wager and then self-excludes, the wager will be canceled and the funds returned to the individual.
Individuals can request exclusion for one year, three years, five years, or a lifetime. A lifetime exclusion can only be granted once a shorter exclusion period has been completed.
In addition to the VSE Program, people affected by gambling addiction can enroll in PlayMyWay (PMW). PMW is a budgeting tool that allows players to track their spending on electronic gaming machines. PMW, which was available at PPC before the audit period began, was launched at MGM Springfield on March 31, 2022 and at EBH on September 12, 2022. Once enrolled, a player receives automatic notifications when approaching 50%, 75%, and 100% of their daily, weekly, or monthly budget, which the individual sets. They may then choose to stop at any point or keep playing. PMW allows enrollment, unenrollment, and budget adjustments at any time.
Also, gaming operators are required to send a monthly statement to patrons who have a rewards card or who participate in a cashless wagering system. This statement is mailed to the patron’s physical address or emailed if an email address is provided. It includes details of total bets, wins, and losses.
Settlement Agreements
State employee settlement agreements can result from claims including, but not limited to, discipline and termination, discrimination, position classifications, employment conditions, promotion, vacation, and sick leave. Claims are reviewed by MGC’s human resources office, legal office, and the executive director to determine whether external counsel is required. If no conflicts are identified, then the human resources office can handle them internally with consultation from the legal office. The legal office gathers and documents facts, determines the next steps, and decides whether external counsel is necessary to continue the review and make recommendations for MGC.
If conflicts are identified, then MGC consults external legal counsel to review and determine the level of the conflict. MGC is not required to obtain approval from the Attorney General or the Secretary of the Executive Office for Administration and Finance to use external counsel.
MGC follows 815 CMR 5.01, CTR’s policy for employee settlements and judgments. The policy states,
- The purpose of 815 CMR 5.00 is to clarify the procedures by which agencies may preserve the availability of funds and may obtain access to funds for the payment of judgments and settlements.
Such clarification will:
(a) Aid agencies in making the payment of judgments and settlements a part of their current year operation or capital project budgeting; and
(b) Ensure faster payment of judgments and settlements, which will lessen the waiting time for successful claimants and litigants against the Commonwealth and its agencies and minimize the amount of any applicable interest.
- 815 CMR 5.00 shall identify funds legally available for payment, and shall minimize the need to use deficiency payments for judgments and settlements of claims against the Commonwealth. 815 CMR 5.00 shall also prevent any use by agencies of the Commonwealth of funds not legally available for payments of such judgments and settlements. If a settlement is warranted MGC must obtain approval from the Commissioners in an executive session to enter into the settlement agreement.
MGC management (including its human resources office, legal office, and executive director) must present the claim to the commissioners, and the process continues through a series of executive sessions to determine whether an employee settlement is warranted. If the commissioners approve the claim, then MGC prepares a “Settlement Agreement and General Release” document, which must be signed by the claimant and MGC’s executive director, and the “Non-Tort Settlement/Judgment Payment Authorization Form,” which must be signed by MGC’s general counsel and chief fiscal officer and submitted to CTR for review and approval. The Gaming Control Fund is used to pay attorney’s fees, costs, and punitive damages, which are directly paid to the attorney or claimant through the state accounting system (instead of through payroll).
| Date published: | August 28, 2025 |
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