Massachusetts Gaming Commission Approves Fanatics and Caesars’ New Authentication Methods

An important shift in the state’s gambling environment occurred on April 29 when the Massachusetts Gaming Commission overwhelmingly decided to approve the introduction of other authentication methods for account creation by the major sports betting companies, Fanatics and Caesars.

Because of cybersecurity concerns, the details of the other authentication methods were kept secret, and the Commission had a “executive session” with Fanatics and Caesars representatives to discuss the issue further. This private conversation emphasized how crucial it is to protect public safety while adopting cutting-edge technical solutions.

Implications for Industry Practices

With Massachusetts legalizing sports betting in 2022 and introducing mobile eligibility last year, the approval of alternative authentication methods signals a departure from conventional knowledge-based authentication (KBA) practices. While many apps rely on social security numbers for account verification, Fanatics and Caesars are pioneering new security measures, ushering in a potential shift in industry standards.

Commissioners Brad Hill, Nakisha Skinner, Eileen O’Brien, and interim chair Jordan Maynard demonstrated unanimous support for the proposed methods, endorsing them without hesitation following the executive session. Their swift decision reflects confidence in the integrity and efficacy of the discussed approaches.

Both Fanatics and Caesars are operating under a waiver exempt period until July 10, 2024, allowing them time to integrate the new technologies into their respective platforms. The Commission’s approval positions these methods as accepted variations within the regulatory framework, offering flexibility for operators to adopt similar approaches or adhere to existing protocols.

Commissioner Hill sought clarification regarding the approval process for future variations, highlighting the Commission’s commitment to transparency and regulatory oversight.

As Massachusetts embraces innovative authentication methods in its burgeoning sports betting market, the industry anticipates further advancements and regulatory adaptations to meet evolving technological and security needs.