Massachusetts Gaming Commission Chair Wants Better Prediction Markets Regulations

Massachusetts regulators and lawmakers are ramping up oversight of emerging verticals, as Gaming Commission Chair Jordan Maynard outlined concerns about prediction markets. The developments reflect growing unease around unregulated betting activity and a broader push to tighten consumer protections across the state's gambling sector.

Maynard was interviewed on the On The Record television show to restate the commission's position that prediction market apps fall outside Massachusetts' regulated framework. He said the state's responsibility centered on ensuring tighter control and consumer safety through strict oversight, a standard applied to licensed sportsbooks but absent in prediction market platforms.

Massachusetts has prohibited prediction markets, while continuing to support regulated sports betting through licensed operators. Those operators must meet requirements covering age verification, responsible gaming tools, and operational safeguards. Maynard contrasted this with prediction platforms, which he said lack comparable protections and create enforcement challenges.

Maynard backed legal action taken by Attorney General Andrea Campbell against Kalshi, arguing the platform effectively offers sports wagering without complying with state law. According to Maynard, all gambling websites must comply with all regulations to ensure their customers remain protected.

He said that there are two issues that have to be addressed for this to happen. One is that there are instances where individuals who are below 21 years old are allowed to access the site, violating state gambling legislation in Massachusetts.

Maynard further criticized markets tied to sensitive real-world events, including crises, stating such offerings were inappropriate.

He indicated the commission would continue applying consistent regulatory standards as new betting products emerge, without expanding its remit beyond existing oversight responsibilities.

Reform bill targets tax, betting limits, and consumer protections

Alongside regulatory pressure on prediction markets, lawmakers are advancing Senate Bill 302, known as The Bettor Health Act. The measure cleared the Joint Committee on Economic Development and Emerging Technologies with a unanimous 5-0 vote and now moves to the Senate Ways and Means Committee.

Introduced by Sen. John Keenan, the bill proposes sweeping changes to the Massachusetts sports betting structure. A central provision would raise the tax rate on gross gaming revenue from 20% to 51%, aligning Massachusetts with higher-tax jurisdictions such as New York and Rhode Island.

The law provides additional funds to the Public Health Trust Fund for responsible gambling programs and research by increasing its annual budget from $1 to $2 million. Operators need to collect data anonymously and analyze gamblers' behavior while developing their risk management systems.

Moreover, there is a move to prohibit proposition betting and live betting since they do not exhibit integrity. The betting amounts are regulated to a maximum of $1,000 daily and $10,000 monthly per operator.

Finally, affordability measures will be implemented, ensuring that a player does not spend more than 15% of the funds available on his account. This initiative is based on previously introduced requirements, which take effect on June 1.