Leading sports betting provider DraftKings has been fined $100,000 in New Jersey for providing inaccurate financial reports. The fine was handed out by the Division of Gaming Enforcement (DGE), the Garden State's leading regulator.
Not Tolerated
Alongside the fine, DraftKings was sent a letter by the DGE on June 16th. The letter, written by DGE’s acting director, Mary Jo Flaherty, said “These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system.” They went on to describe the failings as unacceptable.
The mistakes left regulators with months' worth of incorrect financial data, leading to an extensive period of correction and edits. One of the key mistakes included overstating the amount of money that had been wagered on multi-tiered bets and parlays. It was also said to have underreported its takings in other categories.
Under New Jersey’s licensing laws, all online operators must be tethered to a physical venue. As a result of this, Resorts Digital, the online branch of Resorts Casino, which is linked to DraftKings, ended up filing incorrect tax returns for the period between December 2023 and February 2024.
Outperformed
DraftKings, alongside FanDuel, has been a dominant force in New Jersey's sportsbook scene since its launch in the state. However, the emergence of Fanatics, which has been aggressively expanding its presence in the US market in 2024, has brought a new dynamic to the industry. Going live in 19 states, Fanatics has managed to outperform DraftKings, signalling potential changes on the horizon.
This was the first time since 2018 that DraftKings has not been in the top two performers in the state. However, analysis suggests that this was down to a number of VIP customers jumping from DraftKings to Fanatics, giving the latter a temporary spike. Regardless, it is clear that Fanatics is set to make a statement as it looks to threaten the top two companies.
