DraftKings keeps rolling the dice with various authorities, from state regulators to the US Securities and Exchange Commission (SEC). The result? The online gambling operator is repeatedly crapping out.
Casino Reports counts four instances in this year alone in which DraftKings has been hit with fines by regulators. Included is a pair of six-figure wallops.
Here they are, in order from largest to smallest:
X’d out
Last week, the SEC hit DraftKings with a $200,000 (£149,251/€178,756) fine over the company’s public relations team’s posts on the X (formerly Twitter) and LinkedIn accounts of founder and CEO Jason Robins on 2 July.
The posts in question stated that DraftKings was experiencing “really strong growth” in states where it was operating.
The problem? According to the SEC, those posts violated Section 13(a) of the Exchange Act and Regulation FD. In short, the company was telling tales before information was disclosed to the entire public.
“Information about growth in sales as a public company can be extremely important to investors,” John Dugan, associate director for enforcement in the SEC’s Boston Regional Office, said in a press release. “It is essential that, when companies disseminate material, nonpublic information, they do so fairly to all investors.”
The numbers don’t add up
In June, DraftKings got slapped with a $100,000 fine in New Jersey after regulators there discovered the company reported inaccurate sports betting data for its Resorts Digital skin.
Parlay handle was mishandled in the reporting from December 2023 through March 2024. Errors were even found after the state’s Division of Gaming Enforcement (DGE) wrote a letter to the company detailing the mistakes. The state further alleged that DraftKings was aware of the errors but did not contact the DGE at first, instead just correcting the mistakes.
Read the full story here.
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Original article: https://igamingbusiness.com/sports-betting/draftkings-violations-penalties/
