Massachusetts Gaming Commission fines DraftKings
MGC has levied a $450,000 fine for allowing players to fund sports betting accounts using credit cards.
US.- The Massachusetts Gaming Commission (MGC) has fined DraftKings $450,000 for allowing players to fund sports betting accounts using credit cards. According to the MGC, the operator allowed at least 1,160 wagers to be placed using credit cards between March 10, 2023, and February 13, 2024.
The regulator said that the company accepted over $83,000 in credit card funds from 218 customers. The operator self-reported the violations on three occasions in May 2023, July 2023 and February 2024.
The MGC ordered DraftKings to return the funds to all users and conduct a third-party audit to verify that no additional money was deposited and/or wagered using credit cards.
The regulator said: “Even after discovering this non-compliance, DraftKings repeatedly failed to implement successful corrections to its platform to remedy the issue for nearly a year while also repeatedly reporting that the issue had been resolved. Despite framing the matter as a ‘misunderstanding’ or an ‘anomalous series of events,’ it is undisputed that DraftKings’ actions and inactions constitute both statutory and regulatory violations.”
Connecticut’s Department of Consumer Protection (DCP) recently announced a settlement agreement with DraftKings following an investigation into alleged violations of marketing and advertising rules. The company agreed to return more than $3m to 7,000 Connecticut consumers who participated in certain bonus offers that promised a deposit match or deposit bonus.
