UPDATE: The Massachusetts Gaming Commission (MGC) has issued a $450,000 fine against DraftKings following serious violations of state gambling regulations. The commission revealed that DraftKings allowed players to use credit cards for sports betting, a practice strictly prohibited in Massachusetts.
Between March 10, 2023, and February 13, 2024, DraftKings facilitated 1,160 wagers totaling $83,667.92, with 218 customers making 242 separate deposits via credit cards. The MGC identified three distinct periods during which these violations occurred, including from March 10 to May 31, 2023, May 31 to July 13, 2023, and August 18, 2023, to February 13, 2024.
The MGC noted that DraftKings self-reported these infractions, yet the company’s internal miscommunication and ineffective remediation efforts led to repeat offenses. Despite attempts to rectify the situation after the initial violation period, further issues arose, prompting the commission to take action.
Officials emphasized the severity of the violations, stating that allowing credit card gambling is a significant breach of regulatory expectations.
“DraftKings must ensure compliance with our orders and effectively communicate these to all team members,”
said an MGC spokesperson.
In addition to the hefty fine, DraftKings is mandated to return funds to the affected customers and develop a robust plan to enhance internal communication regarding compliance. The company will also engage a third-party auditor to investigate potential regulatory shortcomings.
This comes amid ongoing scrutiny of DraftKings, as the company recently settled a lawsuit in New Jersey concerning allegations of exploiting a customer’s gambling addiction.
With the growing focus on responsible gambling practices, this latest setback for DraftKings not only raises questions about its operational integrity but also highlights the urgent need for enhanced regulatory compliance across the industry.
As the situation develops, stakeholders are advised to monitor DraftKings’ response and any further actions from the MGC to ensure accountability and safeguard consumer interests.
