Massachusetts Gaming Commission (MGC) Executive Director Dean Serpa has notified licensed operators that prediction market offerings, including the trading of sports-related event contracts, will be "prohibited" throughout the state.
"The (Commission) is aware that several Massachusetts sports wagering licensees are considering or have begun the process of partnering with entities in the prediction market space to begin offering event wagering contracts," Serpa said in a letter sent to operators on November 13.
"Please accept this letter as notice that you are prohibited from offering sports-related event contracts in Massachusetts, directly or via an affiliate, related business entity, or other association, or directing patrons to such event contracts being offered in Massachusetts."
The letter is noteworthy given both FanDuel and DraftKings, which are currently licensed to operate in Massachusetts, have formed partnerships to enter the prediction markets industry within the coming months.
While DraftKings' purchase of Railbird Technologies on October 21 failed to mention the trading of sports-related event contracts, FanDuel unveiled its new FanDuel Predicts platform will offer such trading as part of its Q3 earnings report on November 12.
Operators such as Underdog Fantasy, which currently operates in Massachusetts, and PrizePicks have also begun collaborations to integrate prediction markets within its offering.
"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," Serpa said.
"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."
Serpa would go on to state operators have 10 business days to provide a written response to the MGC as to how it will take steps to ensure full compliance with the notice.
The MGC reported the state's total casino and sports wagering revenue throughout September 2025 on October 21, as the two gaming types combined to generate $148m for the period, but decreased 10.6%
