The New Jersey Division of Gaming Enforcement has imposed a fine of $100,000 on DraftKings for sending inaccurate sports betting data to the state.
It is alleged that these errors caused regulatory authorities to amend and reissue several months of financial data.
The inaccuracies included "exaggerating the amounts of multi-tier bets or combination bets, and underestimating the amounts wagered in other categories."
The erroneous data led to the online department of Resorts Casino, Resorts Digital, submitting incorrect sports betting tax returns for December 2023, and January and February 2024.
Mary Jo Flaherty, Acting Director of the New Jersey Division of Gaming Enforcement, wrote in a letter to DraftKings: "The New Jersey regulatory system of gaming cannot tolerate such serious errors and oversight."
DraftKings recently disclosed its financial earnings for the first quarter of 2024, where it reported revenues of $1.18 billion, a 53% increase year-over-year, with an operating loss of $138.8 million.
Compared to last year's operating loss of $389.8 million, the loss was reduced by over $200 million, yet it remained another unprofitable quarter.
March's earlier performance in New Jersey also showed PointsBet outperforming DraftKings, second only to FanDuel.
Following this latest legal development, DraftKings provided the following statement to Gambling Insider: "We value our relationship with the DGE and are committed to complying with all regulatory guidelines. An error occurred in reporting details of our betting portfolio to the state government, which we have corrected by implementing additional control measures."
