DraftKings Allowed Improper Credit Card Betting in Massachusetts Due to Regulation Misinterpretation
DraftKings faced a Massachusetts Gaming Commission (MGC) hearing after improperly allowing credit card funding for sports betting in the state. The incident involved significant regulatory oversights and multiple failed attempts at correction.
Key Details of the Incident:
- 218 users placed 1,160 sports bets totaling $83,663.92 using credit card funds
- Violation period: March 10, 2023 - February 14, 2024
- DraftKings self-reported the issue on May 31, 2023
Screenshot of DraftKings betting platform
The Problem:
DraftKings staff incorrectly interpreted Massachusetts regulations, believing credit card restrictions only applied to deposits made within state boundaries. When questioned, Commissioner Eileen O'Brien highlighted this misinterpretation of the regulations.
Nelson Agholor headshot
Implemented Solutions:
- Individual tester requirement for responsible gaming controls
- Responsible gaming control reviews during software development
- Release criticality checks for all platform updates
Current Status:
- DraftKings will submit a closing brief
- MGC's final ruling pending (potential outcomes: monetary fine, license implications, or other penalties)
- DraftKings expressed high confidence in their new compliance measures
Commissioner Chair Jordan Maynard acknowledged DraftKings' self-reporting, emphasizing the importance of transparency in gaming operations.
Related Articles
IGT Stock May Benefit from Italian Lottery Contract Decision
