Commissioners from state gambling regulator the Massachusetts Gaming Commission (MGC) said they were “frustrated” by DraftKings’ betting violations.
DraftKings self-reported itself to the Commission after discovering it offered bets on the tennis UTR pro-series, which is not an approved betting event in the state.
The MGC’s Investigations and Enforcement Bureau (IEB) looked into the case. The wagering took place over a 12-day period from March 10 to March 22.
During this time, players placed 864 bets on three events for a total handle of $7,867. DraftKings said the reason the error took place was because of a “miscommunication” between its trading and trading compliance teams.
The fault occurred after the operator copied a list of tennis offerings from a different jurisdiction without verifying if the event was approved in Massachusetts.
After discovering the issue, the DraftKings returned stakes to the players who had placed a bet, as well as removed any winnings and returned any losses.
The operator also removed the UTR pro-series markets from its platform and relayed to its trading team that all new market requests must be submitted first to the compliance team.
Commission “frustrated” over violations
While the Commission acknowledged DraftKings for self-reporting the matter, multiple Commissioners shared concerns over the operator’s conduct.
“I get a little frustrated when I see ‘well we just copied from somebody else, I didn’t check the book in Massachusetts’”, said Commissioner Eileen O’Brian. “I don’t know whether that was benign neglect or whether that was something else.”
Massachusetts chair of the committee Cathy Judd-Stein shared this view: “Like you Commissioner O’Brian, I am a little frustrated and would like to make sure that this practice doesn’t continue, that we’re just really sure that the operators know that the Commission takes this very seriously,” she said.
“I recognize DraftKings for self-disclosure, I appreciate that, we’ve acknowledged that in the past, I want to acknowledge that here,” she added.