Massachusetts Gaming Commission Distributes Millions in Grants Amidst Robinhood Lawsuit

Money falling with a government building in the background.
Table of Contents
    Add a header to begin generating the table of contents

    The Massachusetts Gaming Commission (MGC) has announced the award of nearly $22.8 million in Community Mitigation Fund (CMF) grants to various municipalities and eligible entities across the state. These grants aim to support community needs such as public safety, infrastructure, and gambling harm reduction. Concurrently, trading platform Robinhood has filed a lawsuit against the MGC, challenging the potential enforcement of state gambling laws on prediction markets.

    Key Takeaways

    • The MGC awarded $22.8 million in CMF grants for community projects.
    • Robinhood is suing the MGC over state gambling laws impacting prediction markets.
    • The lawsuit stems from a previous suit against Kalshi, where Robinhood users access sports event contracts.

    Community Mitigation Fund Grants

    The Massachusetts Gaming Commission has allocated approximately $22.8 million from the Community Mitigation Fund (CMF) to support a wide array of community projects. Since its establishment in 2015, the CMF has distributed around $79.5 million to assist host and surrounding communities, as well as other qualified applicants, in managing the costs associated with casino construction and operation. The grants are designed to address critical community needs, including education, transportation, infrastructure development, housing initiatives, environmental concerns, public safety enhancements, emergency services, and programs aimed at reducing gambling-related harm.

    Jordan Maynard, Chair of the MGC, stated, "The Massachusetts Gaming Commission is committed to maximizing the value and minimizing the harms of legal gambling, and this includes the impacts on the host and surrounding communities." He further expressed pride in supporting projects that aim to improve public safety, aid community planning, mitigate gambling harms, bolster workforce development, and address traffic and road safety issues.

    Notable Grant Awards

    Among the significant grant recipients is Everett, which received $2,453,500 for several key projects:

    • High Rise Fire Training: Funding for advanced emergency response training for personnel to handle complex incidents.
    • LAN Tel Video and Police Radios: Installation of additional video cameras along the Riverwalk and dock, plus dual-band radios for enhanced coordination with the Gaming Enforcement Unit.
    • Land & Water Police Patrols: Funding for increased overtime for public safety patrols near the casino during peak periods and for maritime operations.
    • Fireboat Training: Provision of specialized training for fireboat operators, covering readiness, survival skills, and maritime fire suppression.
    • Analysis/Design of Mobility Networks and Infrastructure: Support for assessing and designing infrastructure upgrades, complementing a MassWorks grant.
    • Everett Square Sidewalk and Street Reconfiguration: Additional funding to improve pedestrian access, transit service, and public spaces in Everett Square.
    • Lower Broadway Bus Priority RAISE Grant Support: Data collection and research to support a major transit improvement project on Lower Broadway.
    • Reuniting Neighborhoods and Communities: Matching funds for a federal grant to develop concept designs for transit and roadway improvements.

    Robinhood’s Lawsuit Against the MGC

    In a separate development, Robinhood has initiated legal action against the Massachusetts Gaming Commission. This lawsuit is a direct response to a previous legal challenge filed against Kalshi, a prediction market platform. Robinhood was implicated in the Kalshi lawsuit because its platform provides users with access to contracts related to sports events offered by Kalshi. Robinhood’s legal strategy aims to prevent state gambling laws from interfering with the sports prediction markets available to its customers, arguing that since all trades occur on Kalshi’s platform, these gambling regulations should not apply.

    Sources