Recent DraftKings Violation Frustrated the Massachusetts Gaming Commission

The Massachusetts Gaming Commission (MGC) is unhappy with DraftKings’ violations despite the operator’s efforts to remain transparent and follow the rules. After realizing that it unlawfully took unauthorized bets on a tennis event, DraftKings self-reported its breach.

Since the company did the right thing by reporting the violation, the MGC has so far refrained from penalizing it. At first, MGC commissioners thought of handling the matter to the Investigations and Enforcement Bureau, allowing it to handle penalties and conduct further investigations. However, the authority decided that the matter should be discussed in a more public setting so that other operators can hear the details and refrain from making the same mistakes.

As a result, the regulator announced that it will hold a hearing where the sportsbook will have to explain what led to its violations.

The breach itself saw DraftKings take bets on UTR Pro Tennis, without checking whether it is authorized to take such bets. In total, the sports betting company took 864 wagers translating into a handle of $7,867.

According to DraftKings, the mistake happened because it just copier a betting menu from a different market, without checking whether all included markets are authorized in the Bay State.

The MGC Was Not Happy

The commission was unamused to hear about DraftKings’ violation of the local rules. Commissioners expressed their frustration and disappointment with the company’s negligence.

Commissioner Eileen O’Brien commented on the matter, sharing that she was rather annoyed to hear that DraftKings copied its betting menu without checking the local rules. She noted that she cannot say for certain “whether that was benign neglect or whether that was something else.”

Cathy Judd-Stein, chair of the Massachusetts Gaming Commission, said that she is also somewhat frustrated with the operator. According to her, the authority should do everything in its power to prevent other similar mistakes. In addition, she said that it is important to communicate the matter to other companies and remind them that they are expected to play by the rules.

We just really need to make sure that operators know this is something that the commission takes very seriously.

Cathy Judd-Stein, chair, MGC

Despite that, Judd-Stein acknowledged that DraftKings did the right thing by self-reporting its breach.

Commissioner Jordan Maynard, meanwhile, shared that he would like to see the MGC come up with an appropriate decision on the matter as soon as possible.

In unrelated news, lawmakers in Massachusetts discussed the possibility of legalizing small-stake gambling for senior centers. According to proponents of the idea, this will provide the elderly with much-needed entertainment.