License Name
Massachusetts Sports Wagering Operator License
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Issuing Country/Region
United States, Massachusetts
Regulatory Body
Massachusetts Gaming Commission (MGC)
Types of Regulated Games
Sports betting (retail and online), casino gaming (separate license), slot parlors
Market Coverage
Local (Commonwealth of Massachusetts)
Regulator's Reputation
Very Good
Legal Entity Requirements
Applicant must provide articles of incorporation, certificate of good standing from the Department of Revenue, and comply with state business regulations
Minimum Share Capital
Not explicitly stated in regulations; casino applicants for other license types require $500 million capital investment for resort casinos
Directors and Shareholders Requirements
Background check required for key personnel, directors, and significant shareholders (>10%) for suitability, honesty, and integrity
Anti-Money Laundering (AML) Requirements
Operators must maintain written AML policies, implement staff AML training, monitor for suspicious transactions, assign AML compliance responsibility, and undergo periodic independent audits
Data Protection Requirements
Operators must comply with data privacy and security regulations including encryption, access controls, employee training, secure storage/disposal of personal data, regular audits, and cybersecurity insurance
Reporting Requirements
Operators must submit biannual data privacy compliance reports and regular financial and tax reports as required by MGC
Audit Requirements
Quarterly information system audits and periodic independent tests for AML and internal control compliance
Software Certification Requirements
All sports wagering equipment must comply with MGC standards and technical controls
RNG Certification
Required for casino (not explicitly listed for sports wagering)
Payment System Requirements
Use of secure, approved payment channels per MGC guidelines
Server Location Requirements
Not specified in available sources
Domain Name Requirements
Must be approved by the MGC; often tied to the licensee and verified during licensing
Language Support Requirements
English required
Currency Support Requirements
USD required
Legal Compliance Costs
Includes non-refundable $200,000 application fee, $5 million license fee, and annual regulatory assessments
Background Checks
Full criminal, regulatory, and suitability checks for key individuals and businesses
License Scope Restrictions
Must operate only approved types of wagering; betting on in-state college teams generally prohibited (except in tournaments)
Jurisdictional Tax Compliance
Operators taxed at 15% (retail) or 20% (online) GGR; must comply with MA tax law on income and winnings
Player Data Storage Requirements
Secure storage procedures required, must comply with MGC data privacy regs
Cross-Border Operations
Activities limited to within Massachusetts state borders
License Application Transparency
Applications are public records per state law
Regulatory Contact Point
Massachusetts Gaming Commission
Compliance Officer Requirement
Responsible person(s) for AML and compliance required; must be designated
Local Partnership Requirements
Required for some license types (e.g., Category 3 must be tethered to Category 1/2 for some applicants)
Legal Dispute Resolution
Massachusetts courts and regulator jurisdiction
License Transferability
Requires Commission approval
Sub-Licensing Rules
Not permitted under current framework
Video
License Cost
$200,000 non-refundable application fee; $5,000,000 license fee
Annual Fees
Annual assessments based on adjusted gross revenue, varies per operator
Income Taxes
15% tax on gross retail sports wagering revenue; 20% tax on gross online wagering revenue
Player Winnings Taxes
5% state income tax on winnings; operators must withhold and report for winnings above $5,000, plus federal tax obligations
Financial Guarantees
Not specifically mandated for sports wagering; casino applicants require large guarantee/deposits for other license types
Liquidity Requirements
Not explicitly specified for sports wagering
Financial Reporting Requirements
Regular and as-required submissions to MGC; operators must maintain accurate financial records
Application Processing Time
Varies; initial deadlines set by MGC, rolling basis for some license categories
Required Documents
Application, business entity disclosure, tax certification, personal history disclosure, suitability certifications, scoping survey, internal controls, data privacy/compliance plans
Business Plan Requirements
Business plan and internal controls must be described in the application
Internal Policy Requirements
Documented AML, data privacy, responsible gaming, and security policies required
Testing Requirements
Technical and compliance testing of all wagering systems and equipment
Certification Requirements
All sports wagering equipment and software certified for compliance
Staff Qualifications
Key staff must be qualified and pass background/suitability checks
Physical Office Requirements
Not specified for sports wagering
Local Representative Requirements
Not directly stated, but responsible contact persons required
Marketing Restrictions
No credit card deposits allowed; responsible gaming messaging required; additional rules on advertising practices are promulgated by MGC
Responsible Gaming Measures
Operators must implement responsible gaming measures, staff training, and comply with the MGC Responsible Gaming Framework
Self-Exclusion System
State-mandated self-exclusion programs required for operators
Age Verification Procedures
Must verify all customers are at least 21 years old
KYC Procedures
Full identity verification on account creation and wagering
Customer Support Standards
Not specified, but responsible gaming and complaint handling required
Complaint Handling Procedures
Operators must have formal complaint procedures, subject to MGC oversight
Player Funds Protection
Secure handling of player funds and system segregation; must comply with abandoned property rules
Payout Timelines
Not explicitly stated
Bonus and Promotion Regulations
Promotions cannot be deducted from taxable income; promotional offerings must comply with MGC guidelines
Permitted Games List
Wagering on professional sports, college sports (with restrictions), esports, and motorsports allowed; no betting on in-state college teams except in tournaments
Betting Limits
No regulatory minimums or maximums specified publicly
RTP Requirements
Not specified for sports wagering
Jackpot Regulations
Not applicable for sports wagering licenses
Live Game Requirements
Not specified for sports wagering; live casino gaming covered under different license
Mobile App Compliance
Subject to all the same regulations as desktop platforms and must be individually licensed/tethered to venue or untethered category
Affiliate Program Rules
Marketing affiliates must be registered/approved as sports wagering vendors; may be subject to further licensing
Security Standards
Security controls required for all wagering equipment per 205 CMR, including encryption, data access controls, monitoring, and regular audits
Encryption Requirements
Encryption of all sensitive and personal information, including when stored, accessed, or transmitted
Backup Requirements
Secure and timely backup and disposal of player and operational data required
Monitoring Systems
Operators must monitor for suspicious transactions and betting patterns; required system logging and audits
Operation Logging
Required for integrity monitoring and system audit
Anti-Fraud Systems
Operators must implement fraud detection systems; regular staff training required
API Integration Standards
Not specifically published
Hosting Requirements
Not specified
CDN Usage
Not specified
Scalability Requirements
Not specified
Uptime Requirements
Not specified
Technical Support Availability
Not specified
License Duration
5 years with option to renew for additional 5-year terms
Renewal Procedure
Application with updated materials and assessment of continued suitability; $5,000,000 renewal fee every five years
Penalties for Non-Compliance
Fines and license suspension/revocation for violation of state regulations
Ownership Change Rules
Changes in key individuals/shareholders must be reported and approved
Mergers and Acquisitions Rules
Not specified
Subcontractor Regulations
Vendors must be licensed or registered with MGC
Branding Requirements
Licensees must display the official MGC seal on digital platforms
Intellectual Property Protection
Not specified in available regulations
Dispute Arbitration
Legal recourse through Massachusetts courts
Insurance Requirements
Cybersecurity insurance required per privacy rules
Charity Contributions
Not mandated for sports betting licensees
Staff Training Requirements
Required for AML, responsible gaming, and data privacy
Innovation Support
Not specified
Sustainability Initiatives
Not specified
Accessibility Standards
Not specified
Multilingual Support
Not specified, English required for Massachusetts
Cryptocurrency Support
Not permitted
Esports Betting Regulations
Permitted under regulations for approved events
Fantasy Sports Regulations
Addressed separately from sports wagering regulations
Official Address
Massachusetts Gaming Commission, 101 Federal Street, 12th Floor, Boston, MA 02110
Online Application Portal
https://massgaming.com/about/sports-wagering-in-massachusetts/applications-for-sports-wagering-licenses/
Work Hours
Monday to Friday, 9:00 AM – 5:00 PM
Facebook URL
https://www.facebook.com/MAGamingComm
Twitter/X URL
https://twitter.com/MAGamingComm
YouTube URL
https://www.youtube.com/@MassGamingComm
Departments
Division of Licensing, Investigations & Enforcement Bureau, Legal Division, Communications, Responsible Gaming
FAQ Question 1
What is Massachusetts Sports Wagering Operator License?
FAQ Answer 1
The Massachusetts Sports Wagering Operator License authorizes approved entities to operate legal sports betting (retail or online) within the Commonwealth under the oversight of the Massachusetts Gaming Commission.
FAQ Question 2
Which jurisdiction issues Massachusetts Sports Wagering Operator License?
FAQ Answer 2
The license is issued by the Massachusetts Gaming Commission, the regulatory authority for gambling and sports betting in the Commonwealth of Massachusetts.
FAQ Question 3
What is the cost of obtaining Massachusetts Sports Wagering Operator License?
FAQ Answer 3
The process requires a $200,000 non-refundable application fee and a $5,000,000 license fee, with additional annual regulatory assessments based on gross revenue.
FAQ Question 4
What are the main requirements for Massachusetts Sports Wagering Operator License?
FAQ Answer 4
Applicants must meet strict suitability and background checks for key staff, submit technical and business documentation, implement extensive AML and data protection measures, train staff in responsible gaming, and comply with operational and financial reporting obligations under MGC regulations.