Massachusetts Regulator Says US Gambling Industry Is A “Highway Without Speed Limits”

Jordan Maynard, the chair of the Massachusetts Gaming Commission (MGC), recently expressed concerns regarding the current state of the gambling industry, advocating for enhanced nationwide regulations to promote safer betting practices.

In a recent interview with *The Guardian*, Maynard likened the gambling landscape to “a highway without speed limits, cars without seatbelt dingers,” emphasizing the critical role of regulators in implementing safeguards: “Regulators are the ones who install the seatbelt dingers.” He underscored the reality that, while complete prevention of mishaps is impossible, regulators can ensure that stakeholders are adequately educated and adhere to high standards before engaging in the industry.

Maynard proposed implementing national exclusion lists, similar to BetStop in Australia, at the federal level. Furthermore, he called for standardized advertising regulations to protect consumers from misleading promotional tactics.

Massachusetts Takes Steps to Regulate Gambling

In 2023, Massachusetts introduced new regulations regarding gambling advertising, prohibiting ads targeted at minors or individuals struggling with gambling issues. The regulations also restrict misleading terms, such as “free bet,” implying no initial financial commitment from the user.

Additionally, pending legislation known as the Bettor Health Act, sponsored by Senator John Keenan, seeks to implement stringent measures, including a 51% tax on sports betting, a ban on prop and in-play bets, and a daily wagering limit of $1,000. These initiatives are designed to mitigate the risks associated with problem gambling and protect resident interests.

Maynard has spearheaded investigations into the betting limits imposed by sportsbooks. Although the initial discussions with Massachusetts’ ten active sportsbooks were met with reluctance, subsequent conversations revealed vital data on user account limitations. “They were concerned about public discussions,” reflected Maynard. “My priority is not to maximize operator profits but to ensure equitable practices across the board.”

Since assuming the role of MGC chair in August 2022, coinciding with the inception of legal sports betting in the state, Maynard has overseen significant regulatory actions. The MGC has imposed fines totaling $195,000 on licensed operators for noncompliance regarding advertising regulations and betting on prohibited markets, including college and Russian sports.

The Challenge of Unregulated Markets

Maynard’s office has also issued cease-and-desist letters to unregulated betting companies, responding to industry claims that increased regulation risks pushing users to unlicensed platforms. “I resist the notion that the unregulated market should serve as a scapegoat for all operator challenges,” he stated. “I envision a legal market that is robust enough to diminish the presence of illegal offerings.”

While regulated sportsbooks in Massachusetts generated nearly $600 million in revenue last year, unregulated offshore sportsbooks are estimated to have potentially produced two to three times that amount. Nationally, the unregulated sector accounts for approximately $67 billion, representing 74% of the total gambling market.

Given these challenges, regulators like Maynard face significant hurdles. He observed that their authority is often undermined, stating, “I believe our role isn’t fully acknowledged, and that disconnect affects the industry at large and extends down to the average consumer.”

For stakeholders within the gambling sector, effective regulation is not just about compliance; it’s about establishing a safe and sustainable ecosystem that prioritizes consumer protection while fostering a competitive market. The ongoing dialogue surrounding these critical issues is vital in shaping the future of gambling in Massachusetts and beyond.

About the Author

Adam Roarty is a seasoned writer with extensive experience in the gambling industry. He has contributed as a content writer and editor for several reputable platforms, including Oddschecker, CoinTelegraph, and Gambling Industry News. Adam’s insights focus on emerging trends and legislative changes in the dynamic landscape of US betting, delivering the latest narratives around prediction markets and gaming regulations.