Massachusetts Regulator Swamped With Prediction Market Complaints It Can’t Resolve

The Massachusetts Gaming Commission says it has been inundated with requests to intervene in state residents’ disputes with prediction markets, despite having no authority over the platforms. Massachusetts chief gambling regulator Jordan Maynard, above, has warned of a growing gap between state-regulated sports betting and federally regulated prediction markets. The MGC has received dozens of inquiries concerning platforms it has no authority to police. (Image: MGC) A spokesperson for the regulator told Gambling Insider it responds to these queries by directing consumers to the federal Commodity Futures Trading Commission (CFTC), which oversees the exchanges. The disclosure came as MGC Chair Jordan Maynard warned Congress Wednesday (Nov. 11) that a system where states regulate sports betting while the federal government oversees prediction markets is confusing to consumers. Speaking at a House subcommittee hearing on sports gambling on college campuses, Maynard said sports prediction contracts can appear virtually identical to bets offered by licensed sportsbooks. “We have basically two sets of standards,” he told lawmakers, describing products that look the same to users but fall under different regulatory regimes. He added his agency is being pestered to resolve disputes with platforms that have never obtained a Massachusetts sports betting license. Different Rules, Different Protections Massachusetts legalized sports betting in 2022 and launched it in 2023, imposing a minimum age of 21, as well as restrictions on advertising and a prohibition on proposition bets involving individual college athletes. Prediction markets, by contrast, generally permit users aged 18 and over to trade event contracts and operate under CFTC oversight. The contracts are considered federally regulated financial derivatives rather than wagers subject to state gambling laws, but this position is disputed by regulators in multiple states. Maynard told lawmakers that prediction markets offer contracts on individual college athletes despite Massachusetts prohibiting those bets at licensed sportsbooks. His written testimony highlighted the benefits state regulation has had for consumer protections. The MGC has imposed monetary penalties in 39 enforcement actions, collecting more than $1 million from licensed operators. Sportsbooks have returned nearly $10 million to patrons to compensate for errors attributable to the operators, he said. Consumers Baffled For prediction market customers, however, it’s less clear where to turn when something goes wrong, according to Maynard. He urged Congress to preserve state and tribal authority over sports betting and prohibit college player proposition bets nationally. For now, Massachusetts regulators are left explaining to consumers why an app resembling a licensed sportsbook falls outside the protections they expect from the watchdog. The post Massachusetts Regulator Swamped With Prediction Market Complaints It Can’t Resolve appeared first on Casino.org.