BREAKING: The Massachusetts Gaming Commission (MGC) has imposed a hefty $450,000 fine on DraftKings for serious violations of state gambling regulations. Authorities confirm that the popular sports betting platform repeatedly enabled players to fund their accounts using credit cards, a practice strictly prohibited in Massachusetts.
Between March 10, 2023, and February 13, 2024, DraftKings allowed 1,160 wagers totaling $83,667.92 to be placed with credit cards. The MGC identified three critical periods during which this occurred: March 10, 2023 – May 31, 2023, May 31, 2023 – July 13, 2023, and August 18, 2023 – February 13, 2024. A total of 218 customers made 242 separate deposits using credit cards during these windows.
The MGC’s investigation revealed that DraftKings had self-reported these violations but failed to implement effective internal controls to prevent recurrence. Despite attempts to address the issue after the first violation period, DraftKings’s remediation efforts fell short, leading to repeated infractions. The Commission noted that miscommunication among DraftKings staff contributed to these failures.
URGENT UPDATE: In addition to the fine, DraftKings must return the funds to the 218 affected customers and develop a comprehensive plan to ensure compliance with MGC regulations. The gambling operator will also hire a third-party firm to assess its operations for additional regulatory shortcomings.
This ruling underscores the MGC’s commitment to enforcing gambling laws and protecting consumers. The fine comes at a critical time as DraftKings recently settled a lawsuit in New Jersey concerning problem gambling, further highlighting the operator’s ongoing challenges in managing regulatory compliance.
As this story develops, stakeholders and players alike will be watching closely to see how DraftKings responds to these significant penalties. The future of its operations in Massachusetts hangs in the balance as the company works to address these serious issues and restore trust with regulators and customers.
Stay tuned for more updates on this unfolding situation.
