LPGA Betting Mishap Costs FanDuel Thousands in Fines

FanDuel is facing consequences after regulatory agencies in two states hit the sportsbook with a combined $140,000 in fines for taking bets on markets that had not been approved. While the company moved quickly to cooperate and correct the issues, regulators in Iowa and Massachusetts said FanDuel did not meet expected standards.

Good to know

• FanDuel accepted over 7,000 unauthorized bets on LPGA events in Massachusetts, totaling more than $78,000 in wagers.
• The Iowa Racing and Gaming Commission issued a $125,000 fine for multiple violations across golf, Olympic, and Super Bowl betting markets.
• FanDuel refunded all losing bets and profits tied to these violations and says it has tightened internal procedures.

The Massachusetts Gaming Commission imposed a $15,000 civil penalty on FanDuel for taking bets on LPGA events between March 2023 and June 2024. According to Diandra Franks from the Investigations and Enforcement Bureau, the bets totaled 7,155 wagers and over $78,000 in handle.

FanDuel mistakenly believed the LPGA was included under the International Federation of PGA Tours, which had been approved for betting in 2023. However, LPGA markets did not receive formal approval until June 6, 2024.

Chair Jordan Maynard acknowledged the mistake during a commission meeting, explaining that the misclassification caused confusion for several operators. “FanDuel was responsive and communicative throughout this process and is in agreement with the IE’s recommendation,” Maynard said.

BetMGM also faced a fine of $10,000 for a similar issue, though the scope of their violation was smaller—just under 2,000 bets worth about $1,600.

Iowa hits harder with $125,000 penalty

FanDuel’s trouble did not stop in Massachusetts. The Iowa Racing and Gaming Commission handed down a steeper $125,000 fine, citing a broader set of infractions involving several sports.

Company spokesperson Ben Roth told regulators that the company took roughly $89,000 in unauthorized golf bets and $62,000 on Olympic events. Soccer and Super Bowl-related bets were also flagged during the investigation.

Roth addressed the commission on July 11, saying, “We take responsibility for the matters represented in the settlement before the Commission today and understand that we did not meet the high standard that we hold for ourselves.”

He added that FanDuel has introduced stronger internal controls, including updated checklists, new training protocols, and automated compliance systems. All affected users received refunds for losing bets, along with any revenue the sportsbook collected from the illegal markets.

The Iowa commission found FanDuel responsible for five separate violations over a short timeframe. Chair Daryl Olsen expressed disappointment with the frequency of the infractions, saying, “Five counts within a very short period of time is just too much. We expect more.”