The Massachusetts Gaming Commission awarded its second in-person sports betting license December 19 to MGM Springfield and its final one on December 20 to Plainridge Park, with conditions. As with Encore Boston Harbor, patrons will not be ready to wager until early next year.
The commission delayed the approval two weeks prior and even with the unanimous vote, issues remain. The casino faces a lawsuit; Springfield politicians were less than elated; and regulators still have concerns with the relationship between MGM Springfield and BetMGM, a subsidiary online sportsbook 50 percent owned by MGM Resorts International.
BetMGM will provide many of the services to the in-person sportsbook and will also seek out a mobile license approval associated with the casino, according to MassLive.
Regulators insisted the gaming company failed to explain enough about BetMGM’s technology or its agreements with other locations.
At the December 19 hearing, Commissioner Nakisha Skinner brought up steps MGM Springfield will take to maintain control given the role BetMGM will play in the process.
“I have a hard time imagining a scenario where we have different concerns about BetMGM as a vendor than we would as a category three [mobile] tethered applicant,” Skinner said. “I think all of the issues that we’d be concerned about in connection with their category three application, they’re present and very much an issue in their role as a vendor for MGM Springfield.”
Attorney Jed Nosal, who reps MGM, responded that BetMGM is a service provider for the casino sports betting plans. But the gaming hall keeps full charge of the operations.
“MGM Springfield and MGM Resorts International, and all of the qualifiers that are in front of you, their suitability stands on its own,” he said. “The commission can move forward with this application based on that existing suitability of the applicant and its qualifiers.”
The lawsuit involves Chelan Brown, who accused the casino of inaccurate diversity numbers when it was pursuing a casino license and that she faced discrimination and retaliation.
Nosal denied all allegations.
MGM Springfield Vice President Gus Kim insisted MGM did not falsify reports or otherwise practice any discrimination.
For sports betting, MGM has built a $4 billion lounge with a 45-foot screen for games, a bar, wagering counter and betting kiosks. Officials plan to offer sports betting at staff-operated point-of-sale counters and through automated kiosks.
The commission approved Plainridge Park Casino December 20, the final Category 1 retail sports betting license in the commonwealth. The new license is temporary, according to the Boston Globe.
To lift the temporary tag Penn Entertainment must address the commission’s apprehension about Barstool Sports and its founder Dave Portnoy. That comes with an edict that no one under 21 can attend any Barstool College Football Show event. The permit also demands Plainridge to cooperate fully with the commission inquiry into Barstool Sports and possible problems the company could have on the casino.
The commission also attached a stipulation to its approval of a Category 3 online sports betting license for Caesars Entertainment. The mobile sportsbook will not rely on marketing or advertising with any Massachusetts college or university, according to Yogonet Gaming News.
The commission will begin its investigation on January 3.
“The concern that I have about Barstool and the relationship with PPC, Penn and now [Penn Sports Interactive] has a lot to do with branding and not simply responsible gaming,” Commissioner Eileen O’Brien said at the meeting, as reported by Boston 25 News.
Penn Entertainment President and CEO Jay Snowden defended Portnoy. Penn would not have partnered with Portnoy if he were misogynistic or racist. Penn Entertainment bought a 36 percent stake in Barstool in 2020 and expects to purchase the rest next year.
“Neither David Portnoy nor anyone else at Barstool has any control or decision-making authority over the operations of either the retail or online operations of Barstool Sportsbook,” said Snowden, who referred to Barstool as Penn’s media and marketing partner. “Barstool has been a successful partner and they are a critical element of Penn’s unique omnichannel strategy.”
Retail sports betting in Massachusetts will accept wagers in late January, while online betting could start in March. Each casino in the state—Encore Boston Harbor, Plainridge Park Casino, and MGM Springfield—can depend on two branded applications to hold in-person betting and mobile wagering.
Both Caesars Sportsbook and WynnBET, which was awarded a license last week, will operate mobile betting applications tied to Encore Boston Harbor. The Gaming Commission voted December 19 to award BetMGM a mobile sports betting license tied to MGM Springfield.
