DraftKings fined $450,000 by MGC for accepting credit card deposits
The operator accepted over $83,000 in credit card funds between 2023 and 2024 from 218 relevant customers, self-reporting the state violations on three separate occasions.
Key Points
- The MGC will require proof DraftKings returned the funds to all 218 users as well as conducted a third-party audit to verify no additional money was deposited and/or wagered while using credit cards
- The Commission stressed it could revoke DraftKings’ license to operate within the state but found the fine, return of credit card funds and other measures to be fair given the operator self-reported each violation
The Massachusetts Gaming Commission (MGC) has fined DraftKings $450,000 for unintentionally allowing users to deposit funds and gamble while using credit card payments in 2023 and 2024 which represents a violation of state laws.
“Even after discovering this non-compliance, DraftKings repeatedly failed to implement successful corrections to its platform to remedy the issue for nearly a year while also repeatedly reporting that the issue had been resolved,” the MGC said as part of its decision.
“Despite framing the matter as a ‘misunderstanding’ or an ‘anomalous series of events,’ it is undisputed that DraftKings’ actions and inactions constitute both statutory and regulatory violations.”
The operator accepted over $83,000 in credit card funds between 2023 and 2024 from 218 relevant customers, self-reporting the state violations on three separate occasions in May 2023, July 2023 and February 2024.
The MGC will also require proof DraftKings returned the funds to all 218 users as well as conducted a third-party audit to verify no additional money was deposited and/or wagered while using credit cards.
Good to know: DraftKings agreed to return approximately $3m to 7,000 Connecticut players on July 10 who participated in select bonus offers from October 19, 2021 through January 4, 2023, which promised a deposit match or deposit bonus
DraftKings Senior Manager of Regulatory Operations Kevin Nelson had stated the operator misinterpreted the language of the law and believed it only applied to users making deposits while physically located in Massachusetts.
The Commission responded by stressing it could revoke DraftKings’ license to operate within the state but found the fine, return of credit card funds and other measures to be fair given the operator self-reported each violation.
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