The Iowa Racing and Gaming Commission has fined FanDuel $125,000 for five separate violations of the state’s sports betting rules, citing failures to follow legal betting protocols and uphold responsible gaming standards.
According to Radio Iowa, these included accepting prohibited wagers on events like the Super Bowl, select soccer matches, and golf tournaments.
The most serious infraction, accounting for $30,000 of the total fine, involved FanDuel’s failure to maintain its responsible gaming tools.
FanDuel’s counsel director, Ben Roth, addressed the Commission on 11 July, admitting the company fell short of its own expectations. He outlined corrective actions, including improved employee training, more robust operational procedures, and greater automation to reduce human error. Roth also confirmed that all affected customers were refunded and that the company returned revenue earned from the prohibited bets, ensuring no users suffered financial harm.
Despite these steps, commissioners expressed concern over the rapid succession of violations. Chair Daryl Olsen noted that FanDuel, as one of Iowa’s largest operators, must be held to the same regulatory standards as land-based casinos.
While some violations involved small sums, such as a $330 unauthorized bet or a market removed before bets were placed, others were more substantial, including $89,000 wagered on golf and $62,000 on Olympic events.
This enforcement comes amid broader regulatory pressures on FanDuel. In December, the Massachusetts Gaming Commission fined the operator $10,000 for accepting prohibited bets on Boston College’s NCAA performance before the team had qualified, violating state rules that restrict betting on in-state college teams unless they’re actively competing.
More recently, the Massachusetts regulator issued another $15,000 fine against FanDuel for taking a large number of unauthorized bets on LPGA tournaments between March 2023 and June 2024.
