BREAKING: The Massachusetts Gaming Commission (MGC) has just announced a significant fine of $450,000 against DraftKings for serious violations of state gambling regulations. This urgent ruling comes as it was revealed that the company allowed players to fund their betting accounts using credit cards, a practice strictly prohibited under Massachusetts law.
Between March 10, 2023, and February 13, 2024, DraftKings facilitated at least 1,160 wagers through credit cards, totaling a staggering $83,667.92. The MGC identified three critical periods during which this breach occurred: from March 10 to May 31, 2023, May 31 to July 13, 2023, and finally, from August 18, 2023 to February 13, 2024.
In total, 218 customers made 242 separate deposits using credit cards during these intervals. Although DraftKings self-reported these violations, the MGC highlighted failures in internal communications and ineffective remediation as factors that led to repeated infractions.
“DraftKings’ inability to address these issues promptly resulted in a pattern of non-compliance,” stated an MGC official. The Commission indicated that DraftKings attempted to rectify the issue after the first breach but failed to implement an effective solution, causing the problem to resurface later.
As part of the penalty, DraftKings is not only required to pay the fine but must also reimburse the 218 affected customers. Additionally, the company is mandated to develop a comprehensive plan to ensure that regulatory directives are properly communicated and enforced among its team members. Furthermore, DraftKings will need to hire a third-party auditor to investigate any additional potential regulatory failures.
This ruling follows on the heels of a recent settlement involving DraftKings in New Jersey, where the company faced allegations of exploiting a woman’s husband’s gambling addiction. This pattern of scrutiny raises serious questions about the practices of online gambling operators in the U.S.
The MGC’s firm stance underscores the urgency of compliance within the online gambling industry, as regulators tighten their grip on companies that fail to adhere to established guidelines. As developments continue to unfold, all eyes will be on DraftKings to see how it addresses these critical issues moving forward.
Stay tuned for further updates on this developing story, as DraftKings navigates the fallout from this substantial regulatory action.