New Jersey regulators have fined DraftKings $100,000 for providing inaccurate sports betting data to the state, calling it unacceptable behavior that exposed weaknesses in the company’s operations.
The errors led to regulators having to correct financial data for several months, which hadn’t been necessary in 13 years. Specifically, DraftKings overstated the amount of money wagered on parlays and understated other types of bets.
Mary Jo Flaherty, acting director of the state Division of Gaming Enforcement, criticized DraftKings strongly in a letter dated June 16, which was made public on Friday.
The incorrect data caused Resorts Digital, the online branch of Resorts casino, to submit inaccurate sports betting tax returns for December 2023 and January and February 2024.
These documents had to be corrected and refiled weeks later. Resorts declined to comment.
In early March, the gaming enforcement division’s Office of Financial Investigations noticed issues with DraftKings’ revenue reporting in Illinois and Oregon. They suspected similar problems in New Jersey, according to Flaherty.
DraftKings stated on Monday that they have addressed the issue.
“We value our relationship with the DGE and are committed to ensuring compliance with all regulatory guidelines,” the company said in a statement. “There was an error in the reporting of our wagering mix breakdown to the state that we have corrected by implementing additional controls.”
