TLDR
- Massachusetts Gaming Commission Chair Jordan Maynard warned that prediction markets and illegal platforms are targeting users under 21
- The MGC is partnering with BetBlocker software to help parents block gambling sites, including prediction markets, on children’s phones
- Massachusetts became the first state to secure a court ruling blocking Kalshi from offering sports-related prediction market contracts
- Maynard called for federal advertising guidelines for gambling, saying current ad volume is excessive but protected by the First Amendment
- The state introduced new rules requiring operators to notify bettors of any betting limits within 48 hours and explain the reasoning
Massachusetts Gaming Commission Chair Jordan Maynard is raising alarms about the growing risks posed by prediction markets and unregulated gambling platforms. Speaking on WCVB’s “On the Record,” Maynard said the expanding U.S. gambling sector is increasing the potential for harm, especially among younger users.
Maynard pointed to prediction markets as a particular concern. Unlike regulated sportsbooks and casinos, which require users to be 21 or older, prediction markets operate under federal derivatives laws and allow users as young as 18.
“The legal market has robust technologies in place,” Maynard said. “But the illegal market and these prediction markets, they openly target people who are under 21.”
Multiple reports have backed up those claims. A Wall Street Journal report found that platforms such as Kalshi and Polymarket have promoted themselves on TikTok and Instagram. That promotion included paid creator content that was not always disclosed as advertising.
Campus-level engagement has also been a factor. Earlier this year, questions came up about potential insider trading on prediction markets tied to Super Bowl halftime celebrity appearances on college campuses.
Massachusetts Takes Legal Action Against Prediction Markets
Massachusetts has already moved to limit prediction market activity within its borders. The state was the first to secure a court ruling blocking Kalshi from offering contracts on sports-related events.
However, Kalshi later obtained a stay that allows it to continue operating while the legal case moves forward. Maynard has said he supports the lawsuit and believes prediction markets amount to illegal sports betting.
The MGC also announced a new partnership with BetBlocker, a gambling blocking software tool. Maynard said parents can install BetBlocker on their children’s phones to block not only licensed gambling sites but also illegal offshore platforms and prediction markets.
On the regulatory side, Maynard highlighted several measures Massachusetts has put in place. The state has a dedicated full-time staff focused on responsible gaming, which he described as the only one of its kind in the country.
Tools available to bettors include deposit limits, time limits, and budgeting controls. There is also a statewide voluntary self-exclusion system that covers casinos, sportsbooks, and racetracks.
Calls for Federal Gambling Advertising Standards
Recently, Massachusetts became the first state to require operators to inform bettors of any imposed limit within 48 hours. Operators must also explain the reason for the limit and list the affected markets.
Last year, the MGC issued a state-record $450,000 fine against DraftKings for failing to block credit card deposits. That action preceded DraftKings’ decision to stop accepting credit card deposits nationwide.
Maynard also raised concerns about gambling advertising. “There’s too much advertising… they annoy me,” he said, but acknowledged that regulators cannot impose outright bans because of First Amendment protections.
Instead, he suggested that gambling advertising could be addressed through national guidelines at the federal level. He has previously warned that the national gambling market risks becoming a “highway without speed limits” if consumer protections do not keep pace with growth.
Advertising rules currently vary widely across states. New York has strict rules on messaging and targeting minors. Tennessee requires operators to submit all marketing material to regulators before publication and bans celebrity endorsements. States like Florida, Indiana, and Pennsylvania do not impose some of those same requirements.
New York Representative Paul Tonko has sponsored legislation to create national advertising standards in three consecutive years. His efforts have drawn limited interest from other lawmakers.
