DraftKings’ fined $100,000 by New Jersey gambling regulators

DraftKings’ fined $100,000 by New Jersey gambling regulators

DraftKings Fined $100,000 by New Jersey Gambling Regulators for Inaccurate Sports Betting Data.

New Jersey gambling regulators have fined DraftKings $100,000 for submitting inaccurate sports betting data to the state. This marks the first time in 13 years that regulators had to post corrected financial data for several months, as noted by the New Jersey Division of Gaming Enforcement.

DraftKings reportedly overstated the amount wagered on parlays and understated other types of bets. The New Jersey Division of Gaming Enforcement expressed concerns in a letter to DraftKings, highlighting that such significant errors indicate weaknesses in the company’s business capabilities and compliance with regulatory and financial reporting requirements.

The Division stated in the letter, which was recently made public:

These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system. They evidenced weaknesses in DraftKings’ business abilities and casino experience and unacceptable conduct in dealing with regulations and requisite reporting and financial systems.

DraftKings attributed the inaccuracies to a coding problem in their database, which they have since corrected.

DraftKings said in a statement to The Associated Press:

We value our relationship with the DGE and are committed to ensuring compliance with all regulatory guidelines. There was an error in the reporting of our wagering mix breakdown to the state that we have corrected by implementing additional controls.