Massachusetts Regulators Approve Rules for Sports Betting Shutdowns

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Massachusetts Regulators Approve Rules for Sports Betting Shutdowns
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The legal sports betting business is tough and not every operator will survive. On Thursday, the Massachusetts Gaming Commission approved rules for sportsbooks seeking to exit the business.

business is tough and not every operator will survive. On Thursday, the Massachusetts Gaming Commission approved rules for sportsbooks seeking to exit the business.

“Let's hope we don't see too many of these,” MGC Chair Cathy Judd-Stein said during Thursday’s meeting. Interesting rules being proposed and discussed today by the Massachusetts Gaming Commission around what happens when a licensed sportsbook shuts down in the state. The MGC could, among other things, order an operator to stop taking new bets if they plan to exit the market.The regulation requires a sportsbook operator planning to cease business in Massachusetts to provide notice of that shutdown to regulators in writing at least 90 days before doing so.

The commission heard other states have a “mix” of the rules the MGC ultimately approved but did not appear to have thought a lot about the bankruptcy issue, although they may require a reserve like Massachusetts does.

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