The error, which led to regulators having to correct several months’ worth of financial data, is considered ‘unacceptable conduct.’
By Gambling Insider
The Division of Gaming Enforcement in New Jersey has imposed a $100,000 fine on DraftKings for providing inaccurate sports betting data to the state.
These errors required regulators to make corrections and repost financial data spanning over several months.
The mistake involved “overstating the amount of money wagered on multi-tiered bets, or parlays, and understating other categories of wagers.”
The inaccurate data led Resorts Digital, the online division of Resorts Casino, to file incorrect sports betting tax returns for December 2023 and January and February 2024.
“These kinds of serious errors and failures cannot be accepted in the New Jersey gaming regulatory system,” Mary Jo Flaherty, Acting Director of the state Division of Gaming Enforcement, expressed in a letter to DraftKings.
DraftKings recently published its Q1 2024 financial earnings, reporting revenue of $1.18bn, a 53% increase year-on-year, and an operating loss of $138.8m.
Although this represents a decrease of over $200m compared to last year’s operating loss of $389.8m, the company continues to operate without profitability.
In March, New Jersey’s results showed PointsBet surpassing DraftKings, claiming the second spot behind FanDuel.
Following this latest legal development, DraftKings provided Gambling Insider with the following statement: “We value our relationship with the DGE and are committed to ensuring compliance with all regulatory guidelines. There was an error in the reporting of our wagering mix breakdown to the state that we have corrected by implementing additional controls.”