Tipico Penalized in New Jersey After Leaving U.S. Market

Tipico may have left the U.S. sports betting scene, but its past mistakes in New Jersey have not gone unnoticed. Regulators in the state have now handed down a $25,000 fine for two separate violations that occurred before the company exited the American market.

Good to know

• Tipico sent nearly 1,000 marketing emails to self-excluded users between 2021 and 2022.
• The company also allowed a customer to cash out parlays with inflated odds in January 2024.
• Tipico exited the U.S. market in June 2024 and was later acquired by MGM Resorts.

The New Jersey Division of Gaming Enforcement (NJDGE) fined Tipico for breaking self-exclusion rules and for an odds error that affected dozens of parlay bets. Although Tipico no longer operates in the U.S., the regulator made it clear that companies are still accountable for past actions.

One part of the fine relates to email marketing errors between August 2021 and May 2022. According to the NJDGE, Tipico sent 973 promotional emails to 162 gamblers who had voluntarily placed themselves on the state’s self-exclusion list. These individuals should not have received any gambling-related offers.

Tipico blamed the mistake on a third-party email provider and admitted that its former Head of U.S. Compliance had failed to catch the issue. “Tipico claimed that until the resignation of its former Head of U.S. Compliance in March 2022 these errors had been overlooked,” wrote NJDGE Interim Director Mary Jo Flaherty. Tipico later said it added a system to flag self-excluded players before any promotional messages are sent out.

Then came a second issue in January 2024. Tipico allowed a customer to cash out 41 parlays with incorrect odds due to what it described as a technical error. That player had wagered over $28,000, with the possibility of receiving nearly $40,000 through cash-out options.

Tipico froze the withdrawals after realizing its odds provider had mispriced the bets. It then contacted the NJDGE for advice, though the customer involved eventually filed a complaint. The matter was resolved, but it still led to a violation notice.

To avoid further problems, Tipico and its odds partner agreed to limit all future cash-out amounts to the original stake value whenever odds are changed mid-bet. That adjustment was made after the violation.

Tipico officially sold its U.S. operations to MGM Resorts International in June 2024, after failing to gain ground in a highly competitive market. The brand now focuses on Europe, where it still operates in six countries.

The NJDGE stated that no additional action would be taken at this time. However, if any more violations surface, further penalties may follow.