DraftKings, a major player in the US sports betting arena, finds itself in the Massachusetts Gaming Commission’s (MGC) crosshairs for allegedly violating state laws regarding credit card use in sports betting. An upcoming adjudicatory hearing will determine the fate of the operator in the state, potentially setting a precedent for compliance across the industry.
DraftKings: A Four-Month Fumble
The MGC alleges that DraftKings facilitated credit card deposits from out-of-state accounts into Massachusetts sports betting accounts between March 10 and May 30, 2023. Despite assurances of implemented safeguards, the operator failed to effectively prevent this activity, attributing it to software update failures and internal communication breakdowns. Only after acknowledging the lack of thorough testing did DraftKings implement a comprehensive fix.
The Numbers Don’t Lie
During those four months, DraftKings reportedly accepted 243 bets from 218 users, totaling $83,663.92 using out-of-state credit cards. The MGC learned of this violation on December 14, 2023.
Fanatics’ Self-Reported Slip
Adding to the Massachusetts sports betting regulatory landscape, Fanatics Sportsbook also reported its own violation. The operator mistakenly accepted bets on a December 28 local college team game before promptly rectifying the error. While the MGC didn’t take immediate action, it will consider both cases in the coming year.
A Hearing with High Stakes
The upcoming adjudicatory hearing for DraftKings will dissect the circumstances surrounding the alleged violation and determine appropriate penalties. The outcome could significantly impact the operator’s foothold in Massachusetts and set a crucial precedent for compliance across the US sports betting landscape.
Maintaining Integrity, Setting Precedents
The MGC’s focus is clear: maintaining the integrity of sports betting in Massachusetts. DraftKings’ actions and the hearing’s outcome will be closely scrutinized, potentially influencing future regulations and compliance practices across the industry.
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