The Massachusetts Gaming Commission imposed a $450,000 fine on DraftKings for accepting 1,160 bets funded by credit cards in 2023 and 2024. The commission conducted a nearly 10-hour adjudicatory hearing on this issue in late 2024. DraftKings is also required to reimburse $83,667.92 to 218 customers who placed these bets.
The commission officially concluded a DraftKings noncompliance incident that dates back to 2023. They fined the Massachusetts-based gaming company $450,000 for accepting 1,160 bets funded by credit cards from March 10, 2023, to February 14, 2024, amounting to a total handle of $83,667.92. This represents the largest fine imposed by the commission on a licensed online sports betting operator since the launch of sports betting in 2023.
In addition to the fine, DraftKings must refund $83,667.92 to 218 customers. The company is also required to create a corrective action plan to prevent future occurrences and must undergo an audit by an independent third party approved by the commission. An auditor must be appointed within 90 days, and the audit must be completed within 90 days from their appointment.
A DraftKings spokesperson stated that the company is committed to complying with regulatory standards and values its relationships with regulators. The spokesperson also noted that DraftKings was recently granted a permanent license to operate in Massachusetts.
The commission questioned DraftKings representatives for nearly 10 hours over two days during a noncompliance hearing. Credit card use for betting in Massachusetts is banned, but customers funded their accounts via credit cards in states where it’s allowed and placed bets in Massachusetts.
DraftKings reported the incident to Bruce Band, former director of sports wagering for the Massachusetts Gaming Commission, on May 31, 2023, revealing they mistakenly allowed credit card-funded bets since sports betting launched on March 10, 2023. After notifying the commission of the error’s correction, they discovered that the issue persisted due to inadequate testing. Credit card bets continued until July 13, 2023, when a successful software update was implemented. An adjudicatory hearing was scheduled for February 14, 2024, but a day earlier, it was discovered that two additional entries into a DraftKings pool contest had been made with credit card funds.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com