The Massachusetts Gaming Commission (MGC) has made no bones about its deliberate effort to take its time to draw up regulations before letting bettors wager on sports. But the agency has agreed, without enough thought, to permit an uncapped number of temporary licenses.
The head of the commission, Executive Director Karen Wells, warned that under this scenario, the majority of those sportsbooks will be required to cease operations within a year, according to the Boston Herald.
Under state legislation, the number of mobile operator licenses unaffiliated with a casino or simulcast is limited to seven, but there is no such limit on temporary licenses.
“It is possible that no less than 30 entities will be competing for up to seven ultimate untethered category 3 licenses,” Wells said.
“For those companies that do enter the temporary licensee pool, but do not advance in the competitive selection process, as many as 76 percent will be required to shut down,” she said.
The MGC will need to create a process to actually shut down, creating problems. For example, temporary operators not approved for a full license could not get back the $1 million fee.
Customers who place bets for future events, such as the Super Bowl or March Madness, could be left hanging if the shutdown precedes those events, Wells said.
Commissioner Nakisha Skinner said since rules and regs are not approved, temporary license talk is a bit too early.
Commission members elected to ask for legal guidance on whether the number of temporary licenses could be capped, and if there could be a more competitive selection process.
