Overview
During the audit period, the Massachusetts Gaming Commission (MGC) did not monitor the dissemination and distribution of advertising materials by sports wagering operators before their release to the public, as required by Section 256 of Title 205 of the Code of Massachusetts Regulations (CMR). This lack of monitoring of advertising material resulted in 51 incident claims submitted to MGC, where advertising materials were distributed to underage youths and people affected by gambling addiction by sports wagering operators between March 1, 2023 and March 31, 2024.
One notable issue involved direct mail marketing materials being sent to underage youths and people affected by gambling addiction. Additionally, MGC’s marketing compliance team found that various adverse advertising and marketing materials (e.g., advertisements that were false, misleading, or targeted to minors and/or people affected by gambling addiction) were disseminated to the public without the mandatory disclaimer indicating that participation was restricted to individuals 21 years of age or older.
Furthermore, there were instances where sports wagering operators disseminated or distributed marketing promotions that did not include responsible gaming information and guidelines for people affected by gambling addiction. For example, 17 advertisements did not provide people affected by gambling addiction with the Massachusetts Problem Gambling Helpline, neglecting the responsibility to provide support to those who may struggle with gambling-related issues.
Additionally, another instance was a marketing promotion which required individuals to place multiple bets over a span of 10 consecutive days. This promotion contradicts GameSense’s guidelines for lower-risk gaming, which recommend limiting bets to a maximum of 4 days per month. This not only undermines efforts to promote responsible gambling but also sets a dangerous precedent for encouraging excessive betting behavior among people affected by gambling addiction.
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.
Authoritative Guidance
According to 205 CMR 256.00,
256.04: False or Misleading Advertising
No Sports Wagering Operator, Sports Wagering Vendor, or third party marketing or adverting entity required to be licensed or registered pursuant to 205 CMR 234.00: Sports Wagering Vendors, nor any employee of any of the foregoing, may advise or encourage patrons to place a specific wager of any specific type, kind, subject, or amount. This restriction does not prohibit general advertising or promotional activities which may notify a patron of the need to place a specific wager type, kind, subject, or amount in order for patron to receive a promotional benefit.
Section 256.05 Advertising to Youth,
(1) Advertising, marketing, branding, and other promotional materials published, aired, displayed, disseminated, or distributed by or on behalf of any Sports Wagering Operator shall state that patrons must be 21 years of age or older to participate; provided that branding consisting only of a display of an Operator’s logo or trademark related to Sports Wagering shall not be required to comply with 205 CMR 256.05(1) unless it is, or is intended to be, display on signage or a fixed structure at a sports venue where it is likely to be viewed by persons younger than 21 years old. . . .
Section 256.06 Advertising to Other Vulnerable Persons
Advertising, marketing, and other promotional materials published, aired, displayed, disseminated, or distributed by or on behalf of any Sports Wagering Operator shall include a link to and phone number for the Massachusetts Problem Gambling Helpline using language provided by the Department of Public Health or such other responsible gaming information required by the Commission (“Responsible Gaming Messaging”).
Reasons for Issue
The provisions outlined in Section 256 of the CMR do not specifically mandate that MGC is required to conduct a review of the marketing materials produced by the sports wagering operator before these materials are disseminated and made available to the public. However, it is stated that the commissioners retain the authority to enforce corrective measures in cases where it determines that the marketing materials do not meet the standards and requirements set forth in section 205 CMR 256.00. This implies that, while prior review is not a prerequisite, MGC can still take action to address any noncompliance or issues identified post-distribution.
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.
Auditee’s Response
The MGC appreciates the Auditor’s work and comments on this topic and agrees that operator compliance regarding advertising and the content of advertisements is critical. To this end, the MGC has a track record of taking action in instances of advertising noncompliance, as documented on the MGC’s website and shared during the audit process. However, as a result of the auditor’s work during this audit, the MGC has engaged an independent auditor to review each licensee’s controls for compliance with 205 CMR 256. The results of this audit will help the MGC further shape discussions around a risk-based approach to regulating licensee’s advertising programs.
Additionally, we note [that in the “Reasons for Issues” section of the audit report] it states, “the provisions outlined in Section 256 of the CMR do not specifically mandate that MGC is required to conduct a review of the marketing materials produced by the sports wagering operator before these materials are disseminated and made available to the public.”
Auditor’s Reply
Based on its response, MGC is taking measures to address our concerns regarding this matter. As part of our post-audit review process, we will follow up on this matter in approximately six months.
| Date published: | August 28, 2025 |
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