DraftKings Fined $100,000 by New Jersey Gambling Regulators Over Inaccurate Sports Betting Data
(Scripps News Staff) - DraftKings has been fined $100,000 by New Jersey gambling regulators for sending inaccurate sports betting data to the state.
The company overstated the amount of money wagered on multi-tiered bets, known as parlays, and understated other types of wagers.
Regulators had to post corrected financial data for several months — something that hasn't happened in 13 years, according to the New Jersey Division of Gaming Enforcement.
“These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system. They evidenced weaknesses in DraftKings' business abilities and casino experience and unacceptable conduct in dealing with regulations and requisite reporting and financial systems,” said the Division of Gaming Enforcement in a letter to DraftKings last month. The letter was recently made public.
DraftKings told the state the errors happened because of a coding problem in a database, which has since been fixed.
“We value our relationship with the DGE and are committed to ensuring compliance with all regulatory guidelines. There was an error in the reporting of our wagering mix breakdown to the state that we have corrected by implementing additional controls,” the company said in a statement obtained by The Associated Press.
