Mass. regulator: prediction markets, ads raise youth betting risk

Jordan Maynard, chair of the Massachusetts Gaming Commission, warned that unregulated prediction markets and heavy gambling advertising are increasing youth exposure and raising the risk of harm across the U.S. gambling sector. He said emerging products operating outside traditional oversight are creating gaps regulators cannot easily close.

Maynard outlined measures the commission has put in place to limit gambling harm. The commission maintains a full-time research and responsible gaming staff. Operators must offer deposit, time and budgeting limits. The state runs a voluntary self-exclusion system that covers casinos, sportsbooks and racetracks, and regulators restrict direct marketing to self-excluded players. The commission requires age-limit labels on gambling advertising and ordered operators to notify bettors within 48 hours if the commission imposes account limits, provide an explanation and list affected markets. Last year the commission fined DraftKings $450,000 for failing to block credit card deposits; the company later stopped accepting credit cards nationwide.

Maynard identified illegal platforms and prediction markets as major sources of underage exposure. He noted prediction markets operate under federal derivatives rules that typically allow users 18 and older, while regulated casinos and sportsbooks require patrons to be 21 or older. Reports indicate some prediction market platforms have promoted themselves on social channels popular with younger users through paid creator content and campus outreach. Regulators and industry observers have flagged possible insider activity in narrow markets, including contracts tied to celebrity appearances at college events.

Massachusetts has pursued legal action against some prediction market operators. The state obtained a court ruling that blocked one operator from offering contracts tied to sports events; that operator later secured a stay and continues to operate while litigation proceeds. Maynard supports the lawsuit and has argued that some prediction market activity can facilitate illegal sports betting.

To help parents limit access for children, the commission is working with BetBlocker, an app that can be installed on family devices to block licensed betting sites, offshore platforms and prediction markets. Maynard said parents can use the tool to add a layer of protection beyond the safeguards offered by regulated operators.

Maynard raised concerns about the volume of gambling advertising and urged federal-level guidance because First Amendment limits restrict state action. He said there is too much advertising and called for national standards to reduce marketing that reaches underage audiences. Advertising rules differ by state: New York restricts messaging and targeting to minors; Tennessee requires regulators to review marketing before publication and bans celebrity endorsements; Florida, Indiana and Pennsylvania have fewer advertising controls. A member of Congress has introduced proposals for federal advertising standards in recent sessions but those proposals have not won broad support.

Maynard warned that the rapid expansion of gambling products nationwide could move faster than consumer protections if oversight does not adapt. He listed fines, advertising labels and technology partnerships as part of the commission’s current approach while litigation and regulatory debates continue at state and federal levels.