New Jersey hands DraftKings $100k fine for unacceptable conduct

July 8, 2024
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The state's Division of Gaming Enforcement wrote a letter to DraftKings on June 16, which was only made available to the public recently.

DraftKings has been fined $100k by the New Jersey Division of Gaming Enforcement for reporting inaccurate sports betting data, something the agency described as “unacceptable conduct” which demonstrated weakness in the company’s business abilities. 

In a letter written to DraftKings from the Division of Gaming Enforcement, it was stated that DraftKings was correcting financial data over a number of months, something New Jersey has not seen in 13 years. The mistakes involved overstating the amount of money wagered on multi-tiered bets, or parlays, and understating other categories of wagers.

The inaccurate data caused Resorts Digital, the online arm of Resorts casino, to file incorrect sports betting tax returns for December 2023 and January and February 2024. These reports then had to be corrected and made available once again weeks later, but Resorts has chosen not to comment on the matter. 

“These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system,” New Jersey Division of Gaming Enforcement Acting Director Mary Jo Flaherty said in the letter written to DraftKings on June 16, but only made available to the public in recent days. 

The recent news is not the only legal trouble DraftKings finds itself in, as a federal judge has chosen not to dismiss a proposed class action suit involving DraftKings and an alleged claim that the company “violated federal securities laws by not properly registering its non-fungible tokens,” according to a recent Bloomberg report. 

Massachusetts District Court Judge Denise Casper presided over the hearing. Judge Casper denied DraftKings' motion and further noted that NFTs are “a digital asset whose ownership, including history of purchases and sales, is reflected in a blockchain.”


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