The New Jersey Division of Gaming Enforcement (DGE) has imposed a $100,000 fine on DraftKings for submitting inaccurate sports betting data to the state over several months. This rebuke, described by acting director Mary Jo Flaherty as “unacceptable conduct.”.
The errors primarily involved overstating the amount of money wagered on multi-tiered bets, known as parlays, while simultaneously understating other categories of wagers. This discrepancy led to Resorts Digital, the online division of Resorts Casino, filing incorrect sports betting tax returns for December 2023 and the subsequent months of January and February 2024.
Flaherty’s stern letter to DraftKings, dated June 16 and made public recently, highlighted the gravity of the situation: “These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system.”
DraftKings acknowledged the issue and attributed it to a coding error in their reporting system. The company stated that the error did not affect taxable revenue directly but admitted it was a critical component of the monthly tax return process.
In response to the fine and criticism, DraftKings assured regulators that corrective measures have been implemented. These include fixing the coding error, enhancing internal controls, and providing additional training for staff involved in financial reporting.
Despite this setback, DraftKings remains a significant player in New Jersey’s online sports betting market, consistently ranking among the top two alongside FanDuel since the state legalized online sports betting in 2018. Recent reports indicated a temporary shift when Fanatics Sportsbook briefly surpassed DraftKings in early 2024, attributed to changes in customer preferences. Both DraftKings and Resorts declined to comment further on the matter.
Original article: https://www.yogonet.com/international/noticias/2024/07/09/73038-new-jersey-regulators-fine-draftkings-100-000-for-inaccurate-sports-betting-data
