- Office of the State Auditor
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Andrew Carden, Director of Operations
Boston — Today, State Auditor Diana DiZoglio’s Office released an audit report of the Massachusetts Gaming Commission (MGC), reviewing the period from July 1, 2020 through June 30, 2023.
MGC is the oversight agency charged with monitoring gaming establishments in the Commonwealth. Its mission is to create a fair, transparent, and participatory process for implementing the 2021 expanded gaming law, which was passed to generate new revenue for Massachusetts and to increase economic growth in surrounding communities.
The five-person appointed body establishes oversight and management of the licensing and regulatory processes for two casinos, MGM Springfield and Encore Boston Harbor and the statewide slots parlor, Plainridge Park Casino, 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 Massachusetts.
Among the audit's findings is that MGC failed to monitor sports betting advertisements before public release, in accordance with its regulatory authority. Seventeen advertisements lacked required responsible gambling information, including an omission of the Massachusetts Problem Gambling Helpline. These failures risk exacerbating gambling addiction and exposing youth to harmful promotional materials.
The audit also found that GameSense agents, who are tasked with supporting individuals affected by gambling addiction, were not fully trained as mandated. Without proper training, these agents are ill-equipped to help individuals struggling with gambling addiction. This undermines the very support systems designed to mitigate gambling-related harm.
Moreover, the audit found that MGC has no accountability process for reviewing and entering into employee settlement agreements, which could conceal workplace misconduct. Without transparency, public funds may be used to silence victims while shielding wrongdoers, risking erosion of public trust.
Finally, during the audit, the State Auditor’s Office learned that two class action lawsuits were filed against Massachusetts gaming establishments. These lawsuits are believed to have arisen from discrepancies between the Massachusetts General Laws, specifically Section 29 of Chapter 23K, and Code of Massachusetts Regulations, 205 CMR 138.13(4), regarding the monthly win/loss statements that should be sent to reward cardholders.
Reward cardholders were not provided with clear and detailed monthly statements that outlined their wins and losses. This means that cardholders were deprived of information that was essential for making informed decisions about their gaming habits and practicing responsible gaming.
By not meeting these requirements, gaming establishments may enhance their profitability at the expense of their patrons’ well-being. Moreover, MGC stands to gain financially, as it receives a portion of the revenue generated by these casinos. This situation raises concerns not only about the implications of prioritizing profit over player welfare but also about the effectiveness of regulatory oversight in promoting safe gaming practices, especially when that regulatory oversight appears inconsistent with the General Laws.
“The Massachusetts Gaming Commission has a responsibility to follow the law and provide adequate oversight, especially pertaining to gambling addiction issues,” said Auditor DiZoglio. “Our findings reveal regulatory breakdowns that we encourage the Commission to continue addressing over the course of the next six months, at which time we will conduct our post-audit review.”
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