 I'm all set up that excellent. Thank you. Good morning. This is a convening of the Massachusetts Gaining Commission early this morning at 8 a.m. because we're holding this meeting virtually I'll take a roll do a roll call good morning commissioner Brian good morning I'm here good morning Commissioner Hill good morning I'm here good morning Commissioner Skinner morning and good morning Commissioner Maynard good morning I'm here today is January 11th 2023 and we've marked this up for three early morning sessions and I suspect that that probably won't be the case but today we are continuing with our evaluation of FBG Enterprises OC or fanatics their request for a category three untethered sports wagering operators online license and we've had a couple of sessions with them and we want to extend our appreciation for their willingness to convene early this morning as we work to to really finalize our work here so when we last left we had had one executive session to address the new technology that that this applicant has and now we got through our review of the application section by section but we did have you know several issues that were outstanding and some which required us to go to an executive session but we do have to decide to vote for that so I thought Council Grossman it would be helpful if you reviewed the items that have been addressed the outstanding items that were addressed they there was some time for an axe to perhaps do that and then go through the the items that we anticipate address in the second session sure okay let me just pull up the items that they have supplemented okay so the list coincides in many ways with the executive session list so we can kind of go through them together that's okay so the the first item on the list was that the Commission was awaiting the receipt of the suitability certification from Michael Rubin it's my understanding that that has been filed so I think we can check that one off the list that's correct the second one was that the applicant was asked to establish workforce and supplier diversity goals they had set a you'll recall a 3% goal on the supplier side and I believe they have submitted additional information relative to workforce and supplier goals I don't know if the commissioners have all seen that but I think that was in response to that request should we ask if it satisfies you had a chance to look at it commissioners are you all set now I'll start further request I'm all set Madam chair thank you and Commissioner Maynard you are nodding your head yep I'm all set thank you okay great thank you the third item on the supplement list was that the responsible gaming plan that was discussed was to be amended or supplemented and description perhaps as to how they plan to incorporate the game sense logic and identify in any way how their plan would have to be adjusted in Massachusetts I know that they did submit information about that so again Madam chair and commissioners we should probably pause to look at whether that satisfies the outstanding request they also noted that they'll come in front of them I think at the January 25th for formal adoption I think that's what I think yeah I was just gonna ask if they could give us no worry of the changes and that that would be for the record that would be helpful I think sure sure have happy to walk through those changes commissioner thank you so we went back looked at the at the plan that we had submitted and then did another read through the game sense logic model really focusing on the intended outputs and outcomes of the of the model as well as the responsible gaming framework that the Commonwealth has adopted I think the notable changes were around just more clear inclusion of 205 CMR 233 and your requirements around around self-exclusion we also added some points around the responsible gaming training that all employees will will be taking this month which we've we've previewed before the beauty of the the supplier that we're working with for responsible gaming training is their ability to work with us to customize that training so so we've committed to working with them to make sure that the training is is on point for the requirements of Massachusetts in the logic model and then also just highlighting the the tools and resources that will be available aligning those with the with the game sense model we stand ready once your once further regulations are published with regards to advertising we can we will look to incorporate those as well just to confirm as the chair stated in committee to us that the the March vote and sort of formally adopting is you'll advance that to so so the committee is called meeting for January 25th the panel be in that meeting great thank you and we're all set on that okay so kind of dovetailing off of that there was a request that there be a plan to include training of employees relative to responsible gaming that be finalized and approved and I note that they have submitted information about the training program as well so that was the last part of that issue and I think that's a statutory requirement I remember correctly so that's good okay so that was that was essentially the list of outstanding issues if you will they need to be supplemented there's a few others that we'll go through but if I may Madam Chair and Commissioners we could start going through the executive session perspective issues now and the first was that in this this would certainly be appropriate for executive session the applicant was asked to provide information relative to the posture of its technology platform and when it anticipates that that will become certified for use so that was the first issue can I interrupt just briefly so that for efficiency that you'll just note the provision and is that under six eyes and or is that a technology that 26 and I'll just yeah absolutely that one could potentially fall under the cybersecurity exemption as well so I might just reference both okay thank you number two on the list is that the applicant was asked to provide specific information relative to the October 2021 New York matter in which fanatics think and it's really it's agreed to pay $1.5 million for knowingly under collecting on sales tax on online sales that was the second issue there's a reference to that in the IEB report that I'll just I'll keep going through the list here unless there are any questions number three the applicant was asked to provide specific information relate relative to the 2019 litigation out of Florida captioned EEOC versus fanatic retail group fulfillment LLC and the corresponding consent decree they have done so those have been circulated and they the documents themselves are public documents so the question now is having been provided with those whether there are still outstanding questions relative to that matter but if so that might fall under potentially not only six I but the privacy exemption to to a degree. Michelle Bryan so my question that I have and the company would have to tell me whether if this is going into either of those areas is what systemic changes they made beyond so the couple warehouses in Florida you know what what if any other changes were implemented as a result of that settlement. You are the EEOC settlement in this case yeah yeah I think you'd prefer to discuss those. I would say both the numbers to answer the litigation in New York and the EEOC matter. Sure I think anything beyond you know what's in the complainer that or the settlement agreements which have been provided I believe those would be on the proprietary that we'd like to discuss the executive session if possible. I think that's fair. So those two items yeah yeah so number four is that the applicant was asked to provide specific information relative to the 2022 class action lawsuit out of federal court in New York involving allegations of violations of the Sherman anti trust act and that is a reference in the IEB report as well. If there are outstanding questions on that again if we want to get into changes made to their controls and any defenses and things along those lines that's appropriate for executive session discussions. Yeah I think that's still a live issue. Number five the applicant was asked to provide or will be asked to provide specific information relative to its corporate governance structure and where the specific applicant falls within that frame. Number six the applicant and RSM will be asked to provide specific information relative to financial projections trends and associated method methodologies including those employed to develop market share projections and what the projections are handle and hold percentages the liquidity of the parent company again important to recall that this is also my understanding a privately held company so a lot of this information is not publicly available which makes this even more appropriate for executive session discussion. Also information relative to the liquidity leverage and profitability ratios presented and any associated information related to the applicant's financial standing and suitability. So that's number six and I see that Connor Loughlin is available here. Number seven the applicant was asked to provide specific information related to the use of its customer database for marketing and associated purposes including any opt in opt out options the technology that may be used to screen out underage and other individuals and the relationship between the commerce company and the betting company if you will for marketing and associated purpose and again that would certainly implicate a competitively sensitive information on its face. Number eight is similar the applicant will be asked to provide specific information as to how much of its that e-commerce database reflects potential betting patrons and I think that relates to their screening process. And number nine and apologize I don't remember these specifics of this request but I did take a note of it. I just want to see if I didn't recall which commissioner made this request but the applicant was asked to provide specific information relative to certain ownership interests including a description of certain qualifiers and I again apologize I don't have a clear memory or notes as to what exactly that one related to. So I think that was me and my question related to some of the fundraising and the ownership interests of some of the professional leagues that don't necessarily trigger a qualifier status in terms of percentage but I still did want to understand in terms of influencer control given that obviously the platform is going to offer bets on those leagues. OK, no that makes sense. So again this one and all the others in my estimation opinion would qualify for discussion in executive session under section 6 I of chapter 23 K and 23 and in that they all implicate competitively sensitive information all the information is being provided in the course of this application and if disclosed publicly would be detrimental to the applicant. That being said that's that exhaust my notes as to the list I don't know if there are any other issues but if not then that's that's what I have. OK, commissioners I think that the conclusion of our last session on this matter we did we were inclined to move on this so as you know I have to read the language from the statute into the record. So the commission anticipates that it may meet in executive session in conjunction with its review of the FBG enterprises out doing businesses fanatics application in accordance with GL chapter 30 a section 21 a subsection 7 and GL chapter 23 and section 6 subsection I to consider information submitted by the applicant in the course of its application for an operator license that is a trade secret competitively sensitive or proprietary in which it disclosed publicly would place the applicant at a competitive disadvantage and general laws chapter 4 section 7 26 C the privacy exemption to consider information submitted in the application materials related to named individuals the disclosure of which may constitute a warranted invasion of personal privacy and general laws chapter 4 section 7 subsection 26 and certain records for which the public disclosure is likely to jeopardize public safety or cybersecurity to consider information submitted in the application material related to the security or safety of persons or building structures facilities utilities transportation cybersecurity or other infrastructure located within the common law the disclosure of which is likely to jeopardize public safety or cybersecurity but that I have a motion Madam Chair I move that we go into executive session on the nine matters to lineated by General Counsel Grossman and for the reasons stated by the chair on the record. Second. Thank you. Any questions? Okay. Commissioner Bryant. Hi. Commissioner Hill. Hi. Commissioner Skinner. Hi. Commissioner Maynard. I'm going to show Jordan today. My apologies that I've been called worse this week. Hi. Thank you and I vote yes. Five zero. Thank you so much. Okay. So we will be transferred over to a virtual room. Just taking one minute. No problem. It's worth got nice crystal. You can't hear me saying Dave Mills. I was on the David Mills. You could take that down please. Thanks. We're all set. Thank you so much. So we are reconvening public meetings today. That's addressing the application of fanatics. This needs being held virtually. So I'll do a quick roll call with my health commissioners are back in this room. Not quite yet. I'll see Commissioner O'Brien. Crystal, are we able to get Commissioner O'Brien over? Chair, the the breakout room has been closed. So it seems like Commissioner O'Brien may have left the full meeting. I can text her right now. Thanks. I'm thinking I'm going to proceed. Something must have happened. What do you think commissioners of our plan is too? I don't know. If we just a journey, right with that's what I'm wondering what here she is maybe. That's weird. Hope she's not lost in space. The younger crowd that was a good show. I'll give her a quick call now, Chair. Thanks. Okay, I'm going to we're reconvening this meeting and just had a brief executive session along the way. We don't have Commissioner. We do have Commissioner Hill along the way. We have lost Commissioner O'Brien, but I'll take a roll call of those commissioners who are here. Commissioner Hill. Hi, Commissioner Skinner. Hi, Commissioner Maynard. Hi. So there's four of us in our business today is now to adjourn. We will be reconvening this meeting again at the early hour of eight AM. We will start briefly and in the public session, and then we return to the executive session. I conclude that business. So with that commissioners, do I have a motion to adjourn? To adjourn. Thank you. Second. Commissioner Hill. Hi. Commissioner Skinner. Hi. Commissioner Maynard. Hi. I vote yes. Four zero with the note that Commissioner O'Brien just stepped away briefly to the applicant. Thank you again for your patience and all that you provided today. Very helpful. We'll see you tomorrow. Madam Chair. Yes. Five minute bio break. And I don't know if you want to open the new meeting first or I'll just open it, but we'll we'll have we'll manage it. Thank you so much. We'll come back when we just after