Company acknowledged the issue

New Jersey regulator fine DraftKings $100,000 for inaccurate sports betting data

Reading time 1:04 min

The New Jersey Division of Gaming Enforcement (DGE) has imposed a $100,000 fine on DraftKings for submitting inaccurate sports betting data to the state over several months.

The errors primarily involved overstating the amount of money wagered on multi-tiered bets, known as parlays, while simultaneously understating other categories of wagers. This discrepancy led to Resorts Digital, the online division of Resorts Casino, filing incorrect sports betting tax returns for December 2023 and the subsequent months of January and February 2024.

DGE acting director Mary Jo Flaherty's stern letter to DraftKings, dated June 16 and made public recently, reads: "These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system."

DraftKings acknowledged the issue and attributed it to a coding error in their reporting system. The company stated that the error did not affect taxable revenue directly but admitted it was a critical component of the monthly tax return process.

In response to the fine and criticism, DraftKings assured regulators that corrective measures have been implemented. These include fixing the coding error, enhancing internal controls, and providing additional training for staff involved in financial reporting.

"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 DraftKings spokesperson said.

Despite this setback, DraftKings remains a significant player in New Jersey's online sports betting market, consistently ranking among the top two alongside FanDuel since the state legalized online sports betting in 2018. 

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