Published: July 8, 2024

New Jersey fines DraftKings $100K for reporting inaccurate sports betting data to the state

In one of the most sternly worded rebukes they have ever issued, New Jersey gambling regulators have fined DraftKings $100,000 for reporting inaccurate sports betting data to the state, which it called "unacceptable conduct” that demonstrated weaknesses in the company's business abilities.

The errors resulted in regulators having to post corrected financial data for several months, something that had not happened in 13 years.

The mistakes involved overstating the amount of money wagered on multi-tiered bets, or parlays, and understating other categories of wagers.

"These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system,” Mary Jo Flaherty, acting director of the state Division of Gaming Enforcement, wrote in a letter to DraftKings on June 16. The letter was made public Friday.

The inaccurate data caused Resorts Digital, the online arm of Resorts Casino Hotel, to file incorrect sports betting tax returns for December 2023 and January and February 2024.

The documents had to be corrected and reposted weeks later. Resorts declined comment.

Plans for a new $75 million building at 2301 Fairmount Ave., one proponents say could transform an underused corner of the city and house about 2,000 employees, took a step forward with a vote of support from the Board of Directors of the Casino Reinvestment Development Authority.

In early March, the gaming enforcement division's Office of Financial Investigations became aware of issues in the way DraftKings had reported sports betting revenue to regulators in Illinois and Oregon, and suspected the same problems were happening in New Jersey, Flaherty wrote.

DraftKings had no immediate comment Monday, but said it would respond later in the day.

The company told New Jersey regulators that an update to a newly created database contained a coding error that resulted in the miscategorization of certain bets, according to the state.

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