Massachusetts Sports Betting Regulators Issue Fine to ESPN Bet

Massachusetts sports betting regulators have issued a $10,000 fine to ESPN Bet, the sports betting app owned and operated by Penn Entertainment.

The nature of this penalty is related to the acceptance of what The Bay State considers illegal wagers. Robert Linnehan of Sports Betting Dime has the full details below:

“The Massachusetts Gaming Commission put one noncompliance matter to bed, while simultaneously opening a new investigation into another. The Massachusetts Gaming Commission approved a civil administrative penalty to PENN Sports Interactive for accepting a number of bets on an NCAA non-Division I basketball team earlier this year. [The] commission approved the fine, but also agreed to revisit the way PENN Sports Interactive’s sports betting operator, ESPN BET, finalized the illegal bets for customers.”

While sportsbooks are no strangers to fines, this penalty is particularly fascinating. Ever since sports betting in Massachusetts launched in January 2023, wagers on non-Division I college basketball teams have been on the no-fly list. So, it is somewhat interesting that these college basketball online betting odds were even available as options. 

From the sounds of things, the Massachusetts Gaming Commission doesn’t seem to know, either. And that likely means this will not be the last we hear about this specific violation.

ESPN Bet Accepted Hundreds of Illegal College Basketball Wagers in the Massachusetts Sports Betting Market

This report, which was released mere days ago, seems like it should be getting more national publicity. However, the total amount of illegal wagers accepted by ESPN Bet is around $12,000. That kind of number is not going to grab headlines or much overall attention outside The Bay State. At least, not right away.

Still, the scale of this violation isn’t exactly tiny. As Linnehan notes, it spans hundreds of illegal wagers: 

“MGC Investigations and Enforcement Bureau (IEB) Counsel Nathaniel Kennedy reminded the commissioners that ESPN BET accepted 249 bets on 27 games that featured at least one non-Division I team in 2024. Massachusetts only allows sports bets on Division I NCAA teams. ESPN BET accepted a total of $12,075 from customers on the games. The operator chose to refund losing bettors their original stakes and allow winning bettors to keep their funds, according to Kennedy. 

“Commissioner Eileen O’Brien took exception to this course of action, believing ESPN BET should have voided all bets taken on these games, as they were technically illegal bets. ‘According to our statute, these all should have been voided. The money, winnings, everything should have been fixed. If they wanted to let them keep as a goodwill gesture, a customer satisfaction gesture, to the people who won some sort of bonus bets or cash, I wouldn’t have a problem with that. But in my view these bets should have been voided, win or loss.’”

A committee later voted against having ESPN voiding all bets, including the winning wagers. But Commissioner O’Brien says the Massachusetts Gaming Commission may revisit the recourse at a later date. 

Are Online Sportsbooks Infractions on the Rise?

This latest issue spotlights a potentially meaningful trend. Anecdotally speaking, it feels as if fines for online sportsbooks are on the rise. 

To be sure, we have seen very few, if any instances, if incredibly sizable punishments. In this case, getting docked $10,000 by Massachusetts sports betting regulators is just a drop in the bucket for a company like Penn Entertainment. But the number of violations themselves—or at least instances in which states are addressing them—appear to be climbing.

Most recently, sportsbooks in New Jersey received fines for accepting wagers on events that had already taken place and concluded. And we have, somewhat routinely, seen states like Ohio, New York and even Massachusetts issue numerous punishments for what are, relative to scale, seemingly minor issues.

This could be a cause for concern. But it is most definitely an inherent part of the rising popularity for online sports betting in the United States. Thirty-nine states, as well as the District of Columbia, have now legalized some form of sports betting. With the industry spreading—and growing—so quickly, the increased volume of business is bound to result in more issues, both minor and major. 

Expect States to Keep Cracking Down on Online Sportsbooks in the United States 

In the case of this Massachusetts sports betting violation, specifically, many will wonder why Penn Entertainment needs a punishment at all. It seems as if they self-identified and reported the issues and sought to remedy it. That will be enough for some.

And yet, in reality, it is important for state regulators to nitpick legal sports betting compliance. While the industry is more prevalent than ever, it remains divisive. Even tons of supporters will admit sports betting legalization is done in spite of very real downsides. 

If states start allowing violations to slide, minor or otherwise, the optics will not be great. It will also open the door to companies pushing more boundaries. And if that happens, the end result may be a bunch of larger-scale problems peppered throughout the country.

Any industry that has a sizable influence over members of society should require thorough compliance. Spotting and reacting to every violation, no matter how seemingly insignificant, is how you improve and ensure safeguards for consumers. It is also how you establish and enforce fair markets.

This is all to say: Do not be surprised if more and more reports trickle out about online sportsbooks receiving fines. We have entered a unique phase in sports betting’s existence. It is more accessible than ever and, thus, more likely to require additional fine-tuning and regulation than ever, too.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: