New Jersey Levies Fine Against DraftKings For Data Errors

Sports are shown on TVs behind the bar as guests enjoy the grand opening of DraftKings Sports & Social as we look at the fines levied against the sportsbook in New Jersey. — Sports are shown on TVs behind the bar as guests enjoy the grand opening of DraftKings Sports & Social in the Short North. Photo by: Adam Cairns/Columbus Dispatch/USA TODAY Network.

One of the top sports betting sites in a major betting market has been fined heavily and criticized for providing inaccurate sports betting data.

DraftKings in the New Jersey sports betting market has been fined by regulators for their deemed “unacceptable conduct.” The operator had been submitting inaccurate financial reports for several months, leading to a $100,000 fine. This penalty is sure to grab the attention of the sportsbook and iGaming platform.

The errors

The major sports betting company, known for its popular New Jersey sports betting app, recently had to address errors in several months’ worth of data, marking a first since the state legalized sports betting.

DraftKings has been found to exaggerate the amount of money bet on parlays and underestimate other betting categories.

Mary Jo Flaherty, the acting director of the state Division of Gaming Enforcement, stated in a letter dated June 16 that such egregious errors and failures are unacceptable within the New Jersey gaming regulatory system.

After errors were reported in the Oregon and Illinois sports betting scenes, New Jersey became aware of the issues.

The fix

Ultimately, the issue stemmed from a coding error that misclassified bets. Initially, DraftKings thought this mistake would not have any financial or tax consequences, however, this turned out to be incorrect.

Resorts Digital, a division of Resorts Casino, is in partnership with DraftKings. Due to inaccurate filings, the sports betting tax returns for December 2023, January, and February 2024 were incorrect.

DraftKings has stated that it has fixed the coding error, corrected the incorrect filings, and reposted them.

DraftKings expressed their commitment to upholding regulatory guidelines and emphasized the importance of their relationship with the DGE to Covers.

Garden State

Despite being one of the largest sports betting markets in the country, New Jersey experienced a decrease in activity during the traditional spring/summer slowdown. In May, the state reported a handle of less than $1 billion, marking the first time since August that it fell below that total. Nevertheless, New Jersey continues to offer a variety of sportsbook promotions to attract bettors.

A state legislator is advocating for the legalization of betting on in-state college teams, which would increase the market even more.

The state has a successful iGaming industry, with NJ online casinos catering to residents. One of these casinos is operated by DraftKings.

If you’re interested in exploring the sportsbook or casino, feel free to utilize our DraftKings promo code or DraftKings Casino promo code.

Written By:
Evans Makayla

Andrew is a Publishing Editor at Underscoreg Review. He graduated from Acadia University with a degree in Kinesiology, working as a personal trainer and in injury rehab, and then attended the College of Sports Media in Toronto to attain a diploma in Radio and Television Sports Broadcasting. Andrew has been involved in the sports betting and fantasy sports space since joining the FNTSY Sports Network in 2014, where he worked as a producer, director, and occasional on-air talent on various shows focusing on sports betting and DFS content. Prior to joining SBR, he spent multiple years with the USA Today Network as an editor and writer. Living in Newfoundland, Andrew frequents grey market sportsbooks, but in the past, when he’s lived in regulated areas, he’s become well-versed with all of our best sportsbooks. As strictly a casual bettor, he enjoys making touchdown parlays with friends (bro-lays), sweating out golf cut parlays during majors, playing same-game parlays for fun, and chasing long-shot bets. He also enjoys using sportsbooks that have solid iGaming and casino platforms. As the old guy on staff, he has an affinity for industry news, which confuses some, but shh … quiet … the news is on.