Summary
- The Massachusetts Gaming Commission has levied a financial penalty on DraftKings and demanded corrective measures be taken.
- The regulator has uncovered that the company accepted wagers funded by credit cards on three separate occasions.
- MGC has mandated that all funds placed on the 1,160 wagers be fully reimbursed to the players.
DraftKings has been hit with a $450,000 fine by the Massachusetts Gaming Commission for breaking the state's betting laws. The penalty comes after 1,160 bets, totaling $83,000, were placed using credit cards, which is against the regulations.
The MGC moves against a prominent state operator
Between March 10, 2023, and February 13, 2024, a significant error unfolded when bets were placed using credit cards, in clear violation of Massachusetts gambling laws. Within the Bay State, using credit cards to place wagers is strictly forbidden. This ban also covers any indirect use involving e-wallets being funded by credit cards for gambling purposes. According to the regulatory watchdog, there were serious lapses in the enforcement and oversight of this rule during three distinct periods: March 10 to May 31, 2023; May 31 to July 13, 2023; and August 18, 2023, to January 13, 2024. In total, 1,160 bets were made, involving 218 customers who used credit cards directly or indirectly to make 242 deposits. Altogether, these transactions amounted to $83,667.92 wagered via credit cards. As a result, the regulatory body has not only fined the company but also demanded that they reimburse their customers, bringing the total financial impact on DraftKings to over $500,000. This lapse in Massachusetts stands out because, elsewhere, such as in Tennessee, the company successfully implemented robust credit card blocking measures during the same periods.
DraftKings needs to enact a third-party audit to maintain compliance
Beyond just paying the fine and compensating affected customers, DraftKings must now collaborate with an independent third-party to ensure they adhere to Massachusetts gambling laws and avoid making the same mistakes again. The penalty from the regulator is no trivial matter. Previously, the Massachusetts Gaming Commission believed DraftKings was following the rules and was assured that credit card payment issues were isolated and resolved. You must log in to leave a comment. Drag and drop files to upload or click here. We couldn't determine the language of your message. Please select your language from the options provided. Your post has been submitted for review by forum administrators to ensure it aligns with our community standards. You will be notified of the outcome within 48 hours via email.
