Bill Simmons’ proxy betting controversy is now creating problems for FanDuel. The Massachusetts Gaming Commission (MGC) voted Thursday to hold a formal hearing after investigators revealed that 22 wagers totaling $21,800 were placed through the sports media personality’s account. Regulators want to know how FanDuel handled the incident and whether more should have been done to prevent it.
The MGC approved a hearing during its November 5 meeting, although a date hasn’t been announced. The decision follows an investigation into wagering activity that Simmons discussed publicly on his podcast in August.
According to the commission’s meeting materials, the wagers were placed between Aug. 7 and Aug. 19. Senior Enforcement Counsel Zachary Mercer presented the findings from the Investigations and Enforcement Bureau, which reviewed the activity involving Simmons’ account.
During the meeting, Commission Chair Jordan Maynard said he wanted to understand how the sportsbook allowed the activity to occur and what happened after Simmons publicly acknowledged the arrangement.
FanDuel had already reported the incident to regulators and voided the wagers. However, those actions haven’t ended the investigation, with commissioners seeking more information about the operator’s compliance procedures.
The controversy dates back to an August 30 episode of “The Bill Simmons Podcast.” Simmons explained that he wanted to place futures bets on UCLA and the Houston Texans while staying in California, where regulated online sports betting isn’t available.
Instead, Simmons had his daughter’s boyfriend access his FanDuel account from Massachusetts. Simmons said he provided the verification code needed to log in, allowing Hank to place the wagers on his behalf.
That arrangement violates Massachusetts’ prohibition on proxy betting, which prevents customers from having someone else place wagers for them. FanDuel’s account rules also prohibit customers from allowing others to use their accounts.
The MGC opened an investigation into Simmons after his comments attracted attention. Simmons then acknowledged on his podcast that he hadn’t understood the rules and said the wagers had been voided.
FanDuel self-reported the violation on August 31, one day after Simmons discussed the bets publicly. The company also took action against the account.
While the upcoming hearing focuses on FanDuel, the commission hasn’t ruled out further action.
In the meeting, Commissioner Paul Brodeur asked whether the investigation could extend to the individuals involved. Mercer responded that the agency wasn’t limiting its options and would consider additional enforcement measures if the evidence justified them.
Commissioner Eileen O’Brien also raised concerns about how well users understand proxy betting restrictions. She pointed specifically to younger bettors, suggesting the incident could provide an opportunity for FanDuel to examine its prevention and education efforts.
Those concerns go beyond one high-profile customer. Regulators want sportsbooks to enforce account-sharing restrictions and ensure customers understand that having another person place wagers is prohibited, even when the bets are made in a legal market.
No financial penalty has been announced. The commission hasn’t determined that FanDuel violated its regulatory obligations. The upcoming hearing will give regulators an opportunity to review the operator’s response before deciding whether further action is necessary.
