Prediction Markets and Sportsbooks Don’t Jibe, Massachusetts Officials Say
Posted on: November 13, 2025, 04:28h.
Last updated on: November 13, 2025, 04:28h.
- Sportsbooks in Massachusetts cannot offer prediction market sports contracts in the state
- DraftKings and FanDuel are launching prediction markets next month
Following a similar ruling in Nevada, gaming regulators in Massachusetts are telling their licensed sportsbooks to refrain from engaging in prediction markets involving sports contracts.
On Thursday, the Massachusetts Gaming Commission (MGC) warned the state’s seven sportsbook operators that they cannot partner with prediction markets or offer sports-related event contracts within the commonwealth. The MGC letter comes after several licensed sportsbooks in the Bay State revealed their intentions to enter the prediction market space.
In the event you offer sports-related event contracts in Massachusetts or direct patrons to such event contracts being offered in Massachusetts, the Commission may take steps up to and including revocation of your license. In addition, to the extent any other regulator takes action against your license due to your operation in the prediction market space, such action may inform decisions related to your suitability in Massachusetts,” MGC Executive Director Dean Serpa wrote.
Massachusetts sports betting license holders include Bally Bet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, and Penn Sports.
Prediction Market Crackdown
The Massachusetts gaming regulators agree with the Nevada Gaming Control Board (NGCB) that prediction markets offering event contracts on sports outcomes constitute sports gambling.
“Wagering on sporting events in Massachusetts is strictly governed by M.G.L. c. 23N, which defines ‘sports event’ or ‘sporting event’ as ‘a professional sport or athletic event, collegiate sport or athletic event, a collegiate tournament, motor race event, electronic sports event, or other event authorized by the Commission under [Chapter 23N]…’ As such, wagering on sporting events may only be offered on authorized sports wagering platforms licensed by the Commission,” Serpa explained.
The MGC notice comes only hours after DraftKings and FanDuel exited Nevada’s sports betting industry to focus on their prediction market efforts. FanDuel’s parent, Flutter Entertainment, surrendered its sports wagering license, while DraftKings folded on its pursuit to enter the state.
Last month, the NGCB concluded that sports event contracts are wagers. The board, often cited as the “gold standard” of gaming regulation, added that most prediction market contracts violate Nevada’s betting laws.
The Board considers offering sports event contracts, or certain other event contracts, as constituting wagering activity under NRS 463.0193 and 463.01962. Wagering occurs whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission or elsewhere,” the NGCB wrote.
“Examples of event contracts that the Board specifically considers to be wagering subject to its jurisdiction include event contracts based on the outcome or partial outcome of any sporting or athletic event, or other selected events such as the World Series of Poker, the Oscars, Esports, and political elections (“Sports and Other Event Contracts”),” the notice continued.
Boston-Based DraftKings
For DraftKings, the company that calls Massachusetts’ capital city its headquarters, the MGC notice is of utmost concern. Though the state gaming agency said its directive regarding prediction markets only applies to such operations within the commonwealth, the MGC said it reserves the right to address its licensees operating PMs outside the state in the future.
The letters do not speak to sports-related event contracts offered outside of Massachusetts or event contracts in general, though the Commission reserves the right to address those topics in the future,” the MGC wrote on its website.
DraftKings is set to debut DraftKings Predicts next month. FanDuel is, too.
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