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Massachusetts gaming officials are currently examining strategies to enhance the involvement of minority-, women-, and veteran-owned businesses in the forthcoming sports betting launch. The objective of this study is to foster diversity within the state’s sports betting industry right from the start.
Why is this diversity study necessary?
The Massachusetts Gaming Commission is obliged to conduct a diversity study as per the Massachusetts sports betting law that was recently enacted. The findings of this study must be submitted before December 31, 2022.
In addition to launching mobile sports betting programs, two more US states are currently exploring methods to enhance the involvement of minorities, women, and veterans.
Despite being subject to strict regulations, the gambling industry is characterized by a predominantly white upper-level management, particularly among its chief officers. MGM Resorts, the owner of MGM Springfield, only has two Black board members.
In order to prevent Massachusetts from becoming an exclusive environment where only the wealthy benefit, state legislators are determined to include minority operators in the sports-betting revenue that is expected to generate millions of dollars.
By incorporating businesses owned by minority groups, women, and veterans, sportsbook licensees can establish meaningful connections with the communities they cater to. These companies reflect a considerably larger portion of the population compared to the current proportions observed in the realm of sports betting.
Involving minority-owned businesses in MA sports betting
Legislators have mandated the MGC to conduct a study on the viability of sports betting kiosks operating in retail locations in Massachusetts, in addition to their ongoing study.
In the event that everything proceeds as intended, individuals belonging to minority, women, or veteran groups who own businesses will have the opportunity to run kiosks. Alternatively, individuals falling outside these categories can collaborate with Massachusetts sportsbooks by engaging in promotions and marketing sponsorships with local businesses.
In addition to providing grants and loans, sportsbooks have the potential to support local cities and the entire state by donating to programs that assist small businesses owned by minorities, women, or veterans. They can even take the initiative to establish their own programs aimed at aiding these underrepresented groups.
In the Boston metropolitan area, there are over 650 businesses owned by individuals from black and brown communities, as reported by the city. Additionally, approximately one-third of all businesses in the state are operated by women. These numbers open doors for sports-wagering operators to foster diversity, as there are also numerous businesses owned by veterans.
Massachusetts isn’t alone in its diversity and inclusion efforts
Both Ohio and Maryland, along with Massachusetts, are eagerly awaiting the introduction of mobile sports betting. Additionally, Massachusetts now finds itself in a similar position as these two states, as it is required to submit diversity and minority disparity studies.
Maryland has already launched retail sports betting, but online sports betting is unlikely to be available before the football season as originally anticipated. Although this delay may result in a loss of millions in tax revenue for the state, Maryland Del. Darryl Barnes sees it as a chance to ensure a successful implementation.
According to Rose McKinney-James, a board member of MGM Resorts, the diversity study conducted in Maryland’s casino industry is a significant demonstration of sacrificing for the collective benefit. She further emphasized that Maryland’s inclusive initiatives are setting a precedent for all upcoming states to follow.
Ohio disparity study timeline
Ohio has a lot of work ahead of it before its planned launch date of Jan. 1. According to the state’s sports-betting law, the Department of Administrative Services is obligated to carry out a disparity study to assess if sports-wagering companies face any form of discrimination or disadvantage based on personal attributes like race, skin color, ethnicity, gender, or disability.
Currently, PlayOhio states that there hasn’t been any initiation of a study. It seems that the Ohio Casino Control Commission will grant gaming licenses prior to conducting the survey. There are speculations that mobile sportsbooks might become operational even before the study commences.
State Senator Cecil Thomas consistently voiced his opposition to such practices, believing that the objective should be to conduct the study prior to issuing licenses to operators. Thomas expressed his belief that carrying out the study afterwards would render it pointless. The primary goal was to establish a licensing system that is equitable and accessible to all.
Jessica Franks, the spokesperson for OCCC, refrained from commenting on the outcomes of pending studies, emphasizing that it is not appropriate for commissioners to discuss them.
What’s next for sports betting in Massachusetts?
Once these states complete their studies, it is expected that the results will align with our current understanding. The casino industry has generally lacked diversity throughout its history, with only a few exceptions. For instance, tribes have been granted the opportunity to operate casino gaming as a means of reparations.
Massachusetts and Maryland are actively striving to create inclusive opportunities for people from diverse backgrounds as sports betting and iGaming expand into new markets nationwide.
There is currently no presence of black-owned casinos in the United States. However, it is important to note that there are numerous qualified individuals from minority backgrounds who possess the necessary skills for various management and executive roles within the industry. Additionally, there are other minority-owned businesses that could potentially contribute to the casino industry in various capacities, either directly or indirectly.
The aim is for the studies to reveal solutions to address the issues we are aware of and need to be resolved.
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