Gaming Regulators Clarify Sports Betting License Requirements For Simulcast Centers And Racetracks

Casinos and mobile betting apps are becoming the focal point as the Massachusetts Gaming Commission (MGC) strives to establish regulatory guidelines for the upcoming launch of MA sports betting in 2023.

Massachusetts has classified operators into three categories for sports betting. Category 1 comprises the state’s three retail casinos, while category 3 includes online sportsbooks. Licensed horse tracks and simulcast centers already present in the state, namely Raynham Park and Suffolk Downs, fall under category 2.

Encore Boston Harbor and MGM Springfield have caught the most attention due to their significant customer base and potential to tap into the lucrative billion-dollar online sports betting market. Both establishments have plans to offer retail and online sportsbooks.

In October 6th of this year, the MGC decided to temporarily halt discussions regarding sports betting at simulcast centers and horse tracks. The potential operators in this field were not given much consideration, which raised concerns for MGC Commissioner Eileen O’Brien. She expressed worries about the licensing process for Category 2 operators being delayed. However, the discussions have now resumed this month and the existing simulcast centers have provided their input.

Timeline And Fee Differences

The timeline for Category 2 betting platforms differs from that of casinos and mobile operators. While the latter two are required to submit a fully filled application and pay a $200,000 processing fee by Nov. 21, Category 2 operators can submit their applications at any time as they will be accepted continuously.

Raynham Park and Suffolk Downs have both fulfilled the necessary paperwork to express their desire to offer sports betting by submitting a compulsory scoping survey. Operators falling under Category 2 are required to pay a licensing fee of $5 million, granting them the ability to provide both in-person and online sports betting services. However, the mobile operator associated with a simulcast center must possess a Category 3 license and pay a distinct $5 million fee.

New developments in responsible gambling innovations could be driven by sports betting.

Partnerships With Mobile Sportsbooks Necessary

Both Raynham Park and Suffolk Downs understand the importance of collaborating with an established sportsbook. Currently, the operators are actively searching for suitable partners who can offer both retail and mobile sports betting services. However, they have not been able to provide the Massachusetts Gaming Commission (MGC) with definitive information regarding potential partners or the timeline for finalizing these partnerships.

Suffolk Downs is currently in the process of finding a suitable site to accommodate its retail sportsbook operations. On the other hand, Raynham Park is actively constructing a gaming facility to serve as a venue for retail sports betting. In order to make way for this development, Raynham Park has initiated the demolition of its existing simulcast building. The new facility will encompass a spacious gaming area featuring theater seating, a collection of TV screens, automated betting kiosks, and dedicated in-person tellers.

Raynham Park is aspiring to transform into a prominent destination for sports betting.

Will There Be A Third Category 2 Operator?

The initial paperwork has been submitted by the Commonwealth Equine and Agricultural Center in Hardwick for the provision of sports betting at a new racetrack. Currently in the planning phase, the center intends to establish itself on the expansive 360-acre Great Meadowbrook Farm. However, the decision regarding the establishment of the racetrack ultimately rests with the local government and residents.

The Hardwick Board of Selectmen initially denied the proposal from Commonwealth Equine and Agricultural Center in October. However, they later changed their decision on November 9. In response, residents of Hardwick who were against the project submitted a petition to the town’s clerk on November 14 as a form of protest. On the same day, the MGC had scheduled an adjudicatory hearing to discuss the proposed racetrack. Nonetheless, upon learning about the petition, the commissioners at the MGC decided to suspend the hearing.

The project will be up for another vote during the upcoming meeting of Hardwick officials. In the event of their approval, the town will organize a special election, granting the voters the ultimate authority to determine the project’s fate.

Currently, Raynham Park and Suffolk Downs are the only Category 2 operators that have a viable opportunity to potentially introduce sports betting in 2023, despite existing uncertainties surrounding their locations and mobile betting partnerships.