New Jersey’s Division of Gaming Enforcement has imposed a $25,000 “civil penalty” on PointsBet for “permitting unauthorized wagers”.
The sanction was handed down to the online sports betting provider on August 23. Details were released this week following a request by the Associated Press news agency.
The regulator filed a complaint in late June regarding three matters.
Firstly, according to the watchdog, PointsBet allowed betting to take place on a prohibited sporting event on May 25, 2022. The college basketball game featured St Peter’s University – which is located in New Jersey.
The market was open for 55 minutes and two people placed bets, totaling $60. Both wagers were cancelled when the mistake – blamed on human error – was identified.
DGE raps PointsBet for esports breaches
Secondly, the operator permitted wagers on a League of Legends World Championships esports event on October 29, 2021. The event featured a 17-year-old competitor – when under state laws, all participants must be at least 18.
Four bets totaling $1,225 were processed, but later voided. PointsBet said it had since put in place a process to check the age of competitors.
Thirdly, PointsBet was accused of allowing betting on a soccer game “after the outcome of the event was already known”. The English Championship game took place on August 21, 2021 between Cardiff City and Millwall.
According to the Associated Press, one customer wagered five bets totalling $13,500 on the game and received $28,275. After uncovering the error, the bets were voided and the money from the initial bets was returned, the regulator said.
Lack of automated processes
PointsBet said it did “not have an automated process in place”. It added that the “overwhelming” number of games available made it “unrealistic” to “verify each event,” the division stated.
PointsBet attributed the error to “an unresolved communication issue” with a third-party data provider.
Fanatics Betting and Gaming closed on the first eight states in its previously announced acquisition of PointsBet’s US business last month – including New Jersey.