Massachusetts Fines DraftKings over Credit Card Violations

The Massachusetts Gaming Commission (MGC) has slammed DraftKings with a fine for multiple violations of the state’s gambling rules. According to the regulator, the gambling company repeatedly allowed its players to fuel their sports betting accounts via credit cards.

DraftKings Had Failed to Prevent Users from Betting with Credit Cards

The MGC understood that, between March 10, 2023, and February 13, 2024, DraftKings had allowed no less than 1,160 wagers to be placed with the use of credit cards. According to the regulator, there were three distinct periods during which players could wager with credit cards. These ran as follows:

• March 10, 2023 – May 31, 2023
• May 31, 2023 – July 13, 2023
• August 18, 2023 – February 13, 2024

The total sum of the wagers stood at $83,667.92. The MGC added that a total of 218 customers made 242 separate deposits with credit cards during the aforementioned periods.

The regulator emphasized that DraftKings had self-reported all of the violations. However, the regulator also noted that the operator’s poor internal coordination and inefficient remediation measures had resulted in repeat offenses.

The Commission Fined DraftKings for Its Violations

According to the MGC, DraftKings had tried to resolve the issue following the first of the three aforementioned periods. Unfortunately, the first fix failed, exacerbating the issue and necessitating further intervention. Several months after that, the issue reappeared, which caused the need for further fixes.

The MGC attributed the initial failure to miscommunication among DraftKings’ team and misunderstanding of the MGC’s intentions and orders.

In any case, the MGC levied a $450,000 fine against the operator due to its failings and reminded it that allowing players to gamble via credit cards is strictly prohibited. When determining the size of the penalty, the MGC considered a variety of factors, including the fact that the violations were self-reported. While the regulator praised DraftKings for its cooperation, it also understood that the operator had successfully addressed similar matters in other states.

In addition to paying the penalty, DraftKings will be required to return the money to the 218 consumers who were affected. It will also be required to form and present a plan to make sure that the MGC’s orders are effectively communicated among its team members and properly enforced.

In addition to that, DraftKings will be required to employ the services of a third party that will probe the operator for other potential regulatory shortcomings.

In other news, DraftKings just settled a problem gambling lawsuit in New Jersey where a woman alleged that the operator had exploited her husband’s gambling problem.