The New Jersey Division of Gaming Enforcement has levied a $20,000 fine against DraftKings and $10,000 fines against Rush Street Interactive and Kambi for violations of sports betting regulations.
The fines were part of a monthly report from the DGE that details actions taken by the DGE’s director.
DraftKings penalized for bets on unapproved events
On Dec. 2, the DGE’s interim director, Mary Jo Flaherty, signed an order that required DraftKings to pay $20,000 for a violation of the state’s gambling laws and regulations.
The Associated Press reported that DraftKings had accepted a series of bets on unapproved events, “including Russian basketball,” over a period of nine months stretching from 2020 to 2021.
DK faced $100,000 sports betting fine in June
This is not the first time DraftKings has faced fines from the DGE. For example, earlier this year, the DGE fined DraftKings $100,000 for providing inaccurate sports wagering data to Resorts Digital, which then filed three months of inaccurate sports wagering tax returns because of the error.
In a letter to DraftKings regulatory representative Jacob List, Flaherty noted that DraftKings knew it made the error in early January but did not report it.
“These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system,” Flaherty wrote. “They evidenced weaknesses in DraftKings’ business abilities and casino experience and unacceptable conduct in dealing with regulations and requisite reporting and financial systems.”
Rush Street Interactive NJ, Kambi get $10,000 fines
RSI NJ and Kambi received their fines for allowing bettors to make wagers on events that had already concluded and for enabling pre-match betting on events that had already started — typically called “past posting.”
RSI NJ took the prohibited bets on a college basketball game and jai alai match after the contests were over, the AP reported. Additionally, RSI NJ accepted pre-match bets on a PGA event after the event had started.
Kambi, which provides the tech for RSI NJ’s BetRivers sportsbook platform, received a fine because it was responsible for allowing the prohibited bets to appear on RSI NJ’s sportsbook.
