All individuals who currently receive, or who are reasonably expected to receive within one calendar year from the date of submission must be included.
For Item 10 of the Business Entity Disclosure Form, is the MGC seeking information on every employee making over $250,000, or only a certain group of employees?
In Item 10 of the Business Entity Disclosure Form, for those individuals who would be expected to receive $250,000 within one calendar year from the date of the submission, can an applicant make these determinations solely on presumed salary and bonus to reduce the externalities that can influence compensation but are beyond the control of the company?
All compensation should be included. If an amount is uncertain, an estimation is acceptable. Best practice would be to itemize the compensation and amounts. E.G.: Employee salary $250k; bonus – up to 25% of salary or 100k; equity (RSUs, NSOs, SARs, etc.) – approximately $800k total.
In Item 9 of the Business Entity Disclosure Form, would the Commission consider it responsive if, for the column “Compensation Subsequent Calendar Year,” this year’s compensation for the individual is provided? Understanding the question is requesting the 2021 calendar year compensation, should subsequent calendar year be read as referring to 2023?
“Total annual compensation received during the last calendar year” would refer to the calendar year for 2021. “Subsequent calendar year” refers to the calendar year for 2022. As we are in November, there should be a degree of relative certainty regarding the overall compensation, and all forms of compensation should be included, including stock options. If estimation is necessary for the remaining portion of the year, please indicate such.
How should an applicant respond if a question does not apply to their operations
Reply with “not applicable”
Can the MGC provide clarification regarding question C.1.a on the application for a sports wagering operator license?
If a company is awarded a sports wagering operator license, how many jobs in the Commonwealth would be associated with that license?
Can the MGC provide clarification regarding question B.4.f on the application for a sports wagering operator license?
If awarded a sports wagering operator license, what would be the necessary time frame from the time a license was awarded to wagers being accepted?
What does the $200,000 application fee cover?
There is one $200,000 application fee for submission of an application for a sports wagering operator license. This includes the required supplemental forms.
Do Category 3 licenses tied to a Category 1 or Category 2 license count toward the seven Category 3 licenses
Per statute, the “tethered” licenses do not count toward the seven.
In question D3 on the application for sports wagering license there is a mislabeling of subsections – can you clarify?
This was a copyediting error. The second “a” should in fact be “b” – please proceed by referencing “b”
When will sports wagering launch in Massachusetts?
In October, the commissioners agreed to a tentative timeline where in-person wagering at Category 1 licensees would begin in late January, and online wagering through Category 3 licensees would begin in early March. This is subject to application submission and commission action. A timeline for Category 2 licensees is to be determined. The MGC will announce firm launch dates as they approach.
What employees of a sports wagering operator are required to obtain a license?
The Commission is in process of promulgating regulations on this issue.
Can you provide clarification regarding question B.1.d on the application for a sports wagering operator license regarding allowable sports events?
At this point, recognizing that the Commission has not determined its list of allowable sports events, are there any commonly allowable sports events in other US jurisdictions that the applicant has already determined it will not offer?
How do I submit an application?
Please visit our sports wagering application page
When is the application deadline for sports wagering?
Category 1 and Category 3 license applications are due on November 21, 2022 at 2:00PM EST. Category 2 license applications will be accepted on a rolling basis.
Category 1 and Category 2 sports wagering operator licensees by statute are allowed to operate a retail sportsbook and up to two or one online sportsbook, respectively. (Those online sportsbooks would be licensed as Category 3 sports wagering operators and considered “tethered” Category 3). If a Category 1 or Category 2 operator elected to operate an online (Category 3) sportsbook, would there be an additional $5,000,000 licensing fee for each “tethered” Category 3 license or does the single $5,000,000 licensing fee cover the totality of the license (the Category 1 or 2 license and any online operators tethered to that operator)? Would application fees be required for a Category 1 applicant and each of the tethered Category 3 applicants?
A Category 1 and Category 2 license is for a licensee to operate in-person retail wagering. Those licenses allow for a Category 1 licensee and a Category 2 licensee to operate up to two or up to one online platform, respectively. Chapter 23N requires those online platforms to be qualified for and awarded a Category 3 license. Each license requires a $5,000,000 license fee.
The fillable PDF application form does not contain spaces to respond to the questions in each subsection. Would it be preferable for applicants to submit one complete pdf document with the answers to all subsection questions or submit electronic files for each applicable subsection?
Preferably, the Commission would like to receive one PDF document containing the answers to all of the questions, in all of the sections. If an applicant has any issues submitting their documents via the MGC Secure File Share System, they should contact the MGC at email@example.com.
The application requires Times New Roman font, with a size of 12, but the fillable PDF application form does not allow the font or font size to be changed and automatically reduces the size if a response is longer than the allotted answer space. Is it acceptable to submit the application using the method in which Adobe reduces the font size?
Yes, it is perfectly acceptable to complete the fillable form as posted on the MGC website. If your response is more prolonged and requires the form to shrink the font to fit in the assigned answer space, that is acceptable. Please use the Times New Roman font, size 12, when drafting your answers for the questions in sections B-G of the application form.
Can an operator that is awarded a license launch after the Commission’s set launch date?
This has not been specifically address at a public meeting, however there is nothing at this time that prohibits any operator from launching after an established launch date.
Do online operators tethered to a Category 1 or Category 2 license need to be licensed as a Category 3 operator?
Yes. Per MGL Chapter 23N Section 3, tethered operators must be “qualified for and issued a category 3 license” by the MGC.
If a company applies for one of the seven stand-alone Category 3 licenses and is not awarded one, is that company permitted to partner with a Category 1 or Category 2 licensee seeking online wagering partners?
Can the MGC provide clarification regarding question G.3 on the application for a sports wagering operator license?
G.3 Financial Stability & Integrity
d. The submission should include a plan or strategy on how the applicant will continue to maintain and sustain the sports wagering operation if it experiences a steep decline in revenue. Further, the submission should follow up with real examples of when such circumstances occurred in other jurisdictions, and how the applicant applied its plan or strategy that led to revenue resumption.
e. The submission should include financial ratios (current ratio, debt-to-equity ratio, gross and net margin ratios) for the last five years, to be calculated utilizing the applicant’s financial reporting year-end balances. The number of ratios submitted for review should total to twenty (20).
j. The narrative submission should encompass the applicant’s understanding and experience with internal controls: controls in place that ensure the integrity of the applicant’s financial and accounting information. It should also include narrative and/or examples of the applicant’s internal control policies and procedures over its internal audit function, external audit relationship, audit/finance and risk committee compositions, executive management with financial expertise, or related governance environment
Are Category 1 licensees required to handle the reporting requirements for their tethered Category 3 licensees, or can that licensee report to the MGC independently?
Each licensee should meet their reporting requirements independently regardless of how they obtained a sports wagering operator license.