The Massachusetts Gaming Commission has fined DraftKings $450,000 for accepting 1,160 credit card-funded bets in 2023 and 2024. An adjudicatory hearing lasting nearly 10 hours was conducted by the commission in late 2024. DraftKings must also reimburse $83,667.92 to 218 customers who placed these bets.
The commission has concluded its investigation into DraftKings’ noncompliance that began in 2023. The gaming company received the hefty fine for accepting bets funded by credit cards between March 10, 2023, and February 14, 2024, totaling a handle of $83,667.92. This penalty is the largest imposed on a licensed online sports betting operator since the introduction of sports betting in Massachusetts in 2023.
On Friday, July 25, the Massachusetts Gaming Commission imposed the fine, and DraftKings is required to refund $83,667.92 to 218 customers. Additionally, DraftKings must develop a corrective action plan and undergo an independent audit to prevent future occurrences. An auditor must be hired within 90 days, and the audit completed within 90 days from retention.
A DraftKings spokesperson expressed the company’s commitment to regulatory standards in each state and thanked the commission for granting them a permanent license in Massachusetts. They also value their relationships with regulators.
The commission scrutinized DraftKings representatives for almost 10 hours over two days in a late 2024 hearing. Although using credit cards for online sports betting in Massachusetts is illegal, customers were funding their accounts with credit cards in states where it is allowed then placing bets in Massachusetts.
DraftKings self-reported the incident to Bruce Band, former director of sports wagering for the Massachusetts Gaming Commission, on May 31, 2023, revealing that they allowed credit card-funded bets since sports betting began on March 10, 2023. Despite attempts to correct the issue, the problem persisted until July 13, 2023, when DraftKings successfully updated their software. However, before a February 14, 2024, hearing, it was found that two entries had again used credit card funds.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com