DraftKings Fined $450,000 for Credit Card Violations in MA
BREAKING: The Massachusetts Gaming Commission (MGC) has just imposed a hefty fine of $450,000 on DraftKings for serious violations of state gambling regulations. The commission has confirmed that from March 10, 2023 to February 13, 2024, DraftKings allowed players to place at least 1,160 wagers using credit cards—an action strictly prohibited under Massachusetts law.
The MGC’s investigation revealed that players made a total of $83,667.92 in wagers through credit cards during three distinct periods: from March 10, 2023 to May 31, 2023, May 31, 2023 to July 13, 2023, and August 18, 2023 to February 13, 2024. Affected were 218 customers who made 242 separate deposits using credit cards.
The MGC noted that while DraftKings self-reported these violations, the company struggled with internal communication and failed to adequately rectify the issues after initial attempts. The regulator emphasized that despite DraftKings’ cooperation, the recurrence of these violations warranted a significant penalty.
In a statement, the MGC remarked,
“DraftKings must ensure compliance with our regulations to protect consumers and maintain the integrity of the gaming industry.”
In addition to the fine, DraftKings is mandated to reimburse the affected customers and develop a comprehensive plan to improve communication and enforcement of MGC’s orders among its team. Furthermore, the company will hire a third-party service to investigate other potential regulatory issues.
This development comes amidst ongoing scrutiny of DraftKings, as the company has recently settled a separate lawsuit in New Jersey concerning allegations of exploiting a gambler’s addiction.
As this story develops, stakeholders in the gaming industry will be watching closely to see how DraftKings responds to this significant regulatory blow. The implications of this fine may resonate beyond Massachusetts, impacting how online gambling operators manage compliance and consumer protection across the United States.
Stay tuned for updates on this urgent situation as more information becomes available.
