The New Jersey Division of Gaming Enforcement (DGE) has smacked DraftKings with a six-figure fine and a verbal undressing for reporting inaccurate sports wagering numbers over several months, the Associated Press reported Monday (8 July).
In a letter sent to DraftKings 16 June, DGE Acting Director Mary Jo Flaherty wrote, “These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system.” Flaherty, not mincing words, described DraftKings’ conduct as “unacceptable.”
The DGE levied a $100,000 fine against the company for the offense, wrote the AP.
Every month, each of New Jersey’s 16 licensed mobile sportsbooks has to report its financials in a number of categories. Included are handle (amount wagered) and revenue, broken down by sport, with multi-leg parlay bets separated out. According to the DGE, the Boston-based company overreported the amount wagered on parlays and underreported in other categories.
The company has consistently been one of the top two sportsbooks in New Jersey by handle and revenue (along with FanDuel) since online sports betting launched in August 2018. Fanatics Sportsbook briefly overtook DraftKings early in 2024. The spike, it is believed, happened after some VIP customers taking their business from DraftKings to Fanatics.
Tax implications of DraftKings’ bad data
All NJ online operators must be tethered to a land-based partner, and DraftKings falls under the Resorts Digital umbrella. Because of DraftKings’ erroneous data, tax returns Resorts filed last December 2023, January 2024 and February 2024 were incorrect.
Both companies declined to comment to the AP.
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