close
close

DraftKings fined $100,000 and reprimanded by NJ DGE

DraftKings fined 0,000 and reprimanded by NJ DGE
DraftKings fined 0,000 and reprimanded by NJ DGE

The New Jersey Division of Gaming Enforcement (DGE) has hit DraftKings with a six-figure fine and a verbal reprimand for reporting false sports betting numbers over several months, the Associated Press reported Monday (July 8).

In a letter to DraftKings dated June 16, DGE Acting Director Mary Jo Flaherty wrote, “These types of gross errors and failures cannot be tolerated in New Jersey’s gaming regulatory system.” Flaherty did not mince her words, calling DraftKings’ behavior “unacceptable.”

The DGE fined the company $100,000 for the offense, the AP wrote.

Each month, each of New Jersey’s 16 licensed mobile sportsbooks must report its financials in a number of categories, including revenue (amount wagered) and earnings broken down by sport, with multiple-stakes accumulator bets reported separately. According to DGE, the Boston-based company overreported the amounts wagered on accumulator bets and underreported in other categories.

The company has consistently been one of the top two sportsbooks in New Jersey by revenue and revenue (along with FanDuel) since launching online sports betting in August 2018. Fanatics Sportsbook briefly overtook DraftKings in early 2024. The surge, it is believed, occurred after some VIP customers switched from DraftKings to Fanatics.

Tax implications of DraftKings’ bad data

All online operators in New Jersey must be tied to a land-based partner, and DraftKings falls under the Resorts Digital umbrella. Because of DraftKings’ faulty data, the tax returns Resorts filed in December 2023, January 2024 and February 2024 were all incorrect.

Both companies declined to comment to AP.

You can read the whole story here.

Casino Reports is an independent
Publication about the regulated US online market
Casino/iGaming industry news, features and original reporting on industry events, deals, laws, regulations and more.

Leave a Reply

Your email address will not be published. Required fields are marked *