Regulators skeptical of low underage betting reports
The Massachusetts Gaming Commission seems unconvinced by the numbers they are getting from sportsbook operators on how frequently underage gamblers access their platforms and place bets.
The Commission met Monday to receive third-quarter reports from representatives of sportsbook operators Caesars Sportsbook, DraftKings, Penn Sports Interactive, and WynnBet, when regulators wondered if the single digit instances of illegal gambling they were being shown were an accurate representation of reality.
Caesars Sportsbook representatives told the commission they had detected and suspended exactly zero accounts for underage betting from July through September; WynnBet officials told them the same. DraftKings reps said there was one instance resulting in an account suspension in July and four in August, down from six the previous quarter. Penn Sports Interactive reported three underage use suspensions, down from five and six the previous quarters.
The commission wasn’t buying it, and for good reason.
According to a National Collegiate Athletics Association survey of 18 to 22-year-olds from earlier this year, over half of the 3,527 underage respondents polled said they had participated in sports wagering despite state laws or corporate terms and conditions ostensibly preventing them from doing so.
At the same time, according to the survey, the majority of sports wagering occurs here in the Northeast.
The commission is aware there is a problem with underage bettors, said Commissioner Brad Hill.
“There is some concern that there are individuals who are underaged using computers and passwords who are of age to bet,” Hill said. “We’re being told that it is happening.”
Commissioner Jordan Maynard was more blunt in his assessment of the numbers offered to regulators.
“I’m just going to be honest: I don’t believe that the number is zero or single digits,” Maynard said. “Take a look at the NCAA survey, you’ll see that (underage gambling) is definitely happening, and it’s happening in high numbers.”
Curtis Lane Jr., speaking for Caesars Sportsbook, explained that accounts exhibiting unusual activity — such as betting away from regularly used IP addresses — are investigated for fraud and unauthorized use and suspended as needed, but that preventing a teenager from sitting down at a computer and accessing a logged Caesars’ account was beyond their technological capabilities.
“From my understanding there is nothing concrete that would definitively identify that. We would have to just do a series of analysis and various testing to determine if that is the case, but at the current stage there is nothing to definitively define if anyone is underage and, you know, using an account,” he said.
“It’s arguably bad parenting,” Hill noted.