Connecticut has taken a significant regulatory action, imposing a total fine of $22,500 on DraftKings and another gambling company, White Hat Gaming. The fine was due to operational issues in an online slot game called "Deal or No Deal Banker's Bonanza," which failed to pay out over 20,600 spins to any winners during a week in August 2023.
Event Overview:
According to promotions, this game was supposed to return nearly 95 cents for every dollar wagered (RTP), but during the period from August 15 to August 21, 522 Connecticut players wagered nearly $24,000 and received no winnings. According to a report by the Connecticut Department of Consumer Protection (DCP), "it was impossible for any player in Connecticut to win during the 7 days of live game platform operation," highlighting severe lapses in game functionality and oversight.
The DCP's report was initially detailed by CT Insider news media, showing that neither DraftKings nor White Hat Gaming reported the malfunction to the consumer protection department until after receiving customer complaints. Despite White Hat Gaming conducting an internal investigation and quickly discovering the issue was due to incorrect file loading, they failed to report it in time. After necessary corrections, the game was relaunched on August 22.
The issue first came to light on August 16, when a player reported to DraftKings after "hundreds of spins" without a single win, suggesting a discrepancy in the "Return to Player" (RTP). Nevertheless, an initial response from a DraftKings representative was: "I understand the frustration of not winning money. However, all casino games are random, no matter who the player is or how long they have played."
After receiving more complaints, another DraftKings representative assured another player that the platform was regulated and monitored to ensure fairness, and advised on how to "self-regulate" their gaming by setting betting limits. It was only after several complaints and the internal discovery of the RTP setting issue that DraftKings and White Hat Gaming took corrective actions.
Settlement and Fines:
By January, White Hat agreed to pay a $3,500 fine to the DCP to resolve charges related to the game operating at 0% RTP, violating state regulations, and failing to fulfill reporting obligations. DraftKings later paid $19,000 in April to reach a settlement.
According to CNBC, DCP spokesperson Kaitlyn Krasselt emphasized the importance of regulatory oversight, stating: "DraftKings' response to consumer complaints was unsatisfactory. According to DCP's investigation, [DraftKings] was required to implement stricter internal controls on its products, regularly submit new game reports to DCP, and improve its consumer complaint process." She added that this incident "is a good example of what might not have been taken seriously had we not intervened before our investigators did."
A DraftKings spokesperson highlighted the company's commitment to customer satisfaction and product integrity, ensuring refunds to all affected customers immediately upon discovering the issue. Meanwhile, White Hat Gaming's White Hat Studios issued a statement reaffirming their commitment to providing a fair and transparent gaming experience, noting that the incident was a one-time event and affected players had been fully refunded by DraftKings.
