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The New Jersey Division of Gaming Enforcement is threatening to fine DraftKings $100,000 for supplying false information on sports betting. The agency called the company’s behavior “unacceptable” and pointed up flaws in the way it conducted business.
The Division of Gaming Enforcement noted in a letter to DraftKings that the business has been updating financial information for a number of months. Overstating money wagered on parlays and understating other bet categories were the two types of errors that were not observed in New Jersey for thirteen years.
Due to these errors, Resorts Digital—Resorts Casino’s online division—filed false tax returns for sports wagering in December 2023 and in January and February 2024. Weeks later, the reports still needed to be revised and resubmitted. Resorts Digital has opted to remain silent over the situation.
Acting Director Mary Jo Flaherty of the New Jersey Division of Gaming Enforcement expressed strong disapproval in a letter to DraftKings dated June 16, which was recently made public. She stated, “These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system.”
Draftkings has responded to the claims and come with a 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,” a company spokesperson told iGaming.org.
Updated 8pm, July 10 to included Draftkings’ response.