DraftKings fined $100,000 in New Jersey for inaccurate financial reporting

The error, which required regulators to correct several months’ worth of financial data, represents ‘unacceptable conduct.’

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The Division of Gaming Enforcement in New Jersey has fined DraftKings $100,000 for sending inaccurate sports betting data to the state.

The errors in question were said to have left regulators having to correct and re-post several months’ worth of financial data. 

The mistake included “overstating the amount of money wagered on multi-tiered bets, or parlays, and understating other categories of wagers.”

The inaccurate data caused Resorts Digital, the online arm of Resorts Casino, to file incorrect sports betting tax returns for December 2023 and January and February 2024.

“These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system,” Mary Jo Flaherty, Acting Director of the state Division of Gaming Enforcement, wrote in a letter to DraftKings.

DraftKings recently reported its Q1 2024 financial earnings, in which it has generated revenue of $1.18bn, up 53% year-on-year, with an operating loss of $138.8m.

It is a reduction of over $200m, compared to the operating loss of $389.8m last year, but it is yet another quarter that has yielded no profitability.

New Jersey’s earlier March results also saw PointsBet outperforming DraftKings, taking second place to FanDuel.

In the wake of this latest legal development, DraftKings provided Gambling Insider with the following statement: “We value our relationship with the DGE and are committed to ensuring compliance with all regulatory guidelines. There was an error in the reporting of our wagering mix breakdown to the state that we have corrected by implementing additional controls.”


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