DraftKings Receives a $150K Fine from the DGE in New Jersey

The Division of Gambling Enforcement (DGE) in New Jersey has announced that it imposed a $150,000 fine against DraftKings. The fine comes after the regulator discovered that the operator allowed a man from Florida to place “proxy bets” by using a friend who was in New Jersey.

DraftKings Receives Monetary Penalty from the DGE

Last month, the DGE filed a complaint against Crown NJ Gaming, doing business as DraftKings. The regulator found that the leading sportsbook operator breached the Casino Control Act by allowing proxy wagering for one of its customers. To solve the complaint, DraftKings agreed to pay a civil penalty of $150,000. With that in mind, the details regarding the rulings were only uncovered earlier this week.

“Imposed a $150,000 civil penalty on DraftKings pursuant to a stipulation of settlement for negligently allowing a patron to engage in proxy wagering,”

reads a ruling released by the DGE

What is more, besides the fine, DraftKings agreed to undertake “corrective actions.” Those actions, according to the Associated Press included voiding some 21 bets which were placed by the Florida man but were still pending. Moreover, the operator vowed to provide additional training for its employees to help prevent such violations in the future. The operator also closed the man’s account for proxy betting.

The Operator Took Steps to Avoid Further Issues

In a statement, DraftKings outlined that it has been working nonstop to improve its systems that help detect such violations. The sportsbook admitted that in this particular case, its system did not detect the violation of the terms of use. However, DraftKings reassured that it has taken relevant actions to address the issue.

“We strive to continuously improve our systems to detect violations of our terms of use,”

reads a statement from DraftKings released by the Associated Press

Launched in 2012, DraftKings has grown to be at the helm of digital sports entertainment and gaming in the US. By now, the company has solidified its presence offering mobile and retail betting operations in more than a dozen states. Moreover, the company’s leading sports betting and gaming technologies power sports and gaming entertainment operators in 17 countries globally. DraftKings is currently an official sports betting and official daily fantasy partner of key leagues such as the NBA, NFL, MLB, NHL and more.