Audit Uncovers ‘Regulatory Breakdowns’ at Massachusetts Gaming Commission

Failures in Responsible Gaming and Advertising

A central focus of the audit was the MGC’s failure to adequately enforce responsible gaming measures, particularly in the state’s newly launched sports betting market.

The audit found that the MGC did not monitor sports betting advertisements before their public release, as required by its own regulations. This oversight failure led to at least 17 advertisements being aired that lacked mandatory responsible gambling information, including the Massachusetts Problem Gambling Helpline.

The report also revealed that “GameSense” agents, who are stationed at casinos to provide on-site support for individuals struggling with problem gambling, were not fully trained as mandated. The audit notes that without proper training, these agents are “ill-equipped” to provide the necessary assistance, a failure that “undermines the very support systems designed to mitigate gambling-related harm.”

Discrepancy in Win/Loss Statements Led to Lawsuits

The audit highlighted a critical discrepancy between state law and the MGC’s own regulations regarding the information provided to casino rewards cardholders. According to state law, these players are entitled to clear and detailed monthly statements outlining their wins and losses.

However, the MGC’s regulations did not align with this legal requirement. As a result, rewards cardholders were not receiving the information essential for making informed decisions about their gambling habits. This failure is believed to be the basis for two class-action lawsuits that have been filed against Massachusetts gaming establishments.

The audit notes a potential conflict of interest in this discrepancy, pointing out that both the casinos and the MGC, which receives a portion of casino revenue, stand to gain financially when players are not fully informed about their losses.

Lack of Transparency in Employee Settlements

The report also took aim at the MGC’s internal practices, finding that the commission has no accountability process for reviewing and entering into employee settlement agreements. This lack of transparency, the audit warns, could conceal workplace misconduct and lead to the misuse of public funds to “silence victims while shielding wrongdoers,” potentially eroding public trust in the agency.

Auditor DiZoglio’s office has put the MGC on notice, making it clear that corrective action is expected.

“The Massachusetts Gaming Commission has a responsibility to follow the law and provide adequate oversight, especially pertaining to gambling addiction issues,” said Auditor DiZoglio. “Our findings reveal regulatory breakdowns that we encourage the Commission to continue addressing over the course of the next six months, at which time we will conduct our post-audit review.”