New Jersey gambling regulators have fined DraftKings, Rush Street Interactive NJ, and Kambi a total of $40,000 for various violations. DraftKings was fined $20,000 for taking bets on unauthorized events, while Rush Street Interactive NJ was fined $10,000 for accepting bets on games that had already ended. Kambi, a sports betting technology company, was also fined $10,000 for similar violations. Rush Street accepted bets on a college basketball game and three Magic City Jai Alai games after the results were already known, while Kambi blamed network connectivity errors for the mistakes.
Kambi, based in Malta, failed to manually remove a college basketball game from its betting markets after the game had ended, resulting in bets being accepted after the conclusion of the event. Rush Street also accepted bets on jai alai games that had already finished due to a connectivity issue. In another instance, Rush Street took bets on a PGA match after the event had already begun, with Kambi attributing the mistake to a newly hired trader who failed to enter the correct closing time for bets. Both the trader and supervisor underwent retraining as a result of this incident.
DraftKings was also fined for accepting bets on unauthorized events, including Russian basketball and unapproved table tennis matches. In one instance, DraftKings accepted pre-season NFL bets without including specific information required by the state, resulting in 182 wagers worth nearly $7,000 being voided and refunded to customers. Kambi admitted to incorrectly identifying the Russian basketball league as approved for wagering in New Jersey and failing to put the necessary conditions in place for table tennis matches. The state directed DraftKings to void over $61,000 in bets on unapproved events and return the money to customers.
Kambi did not immediately respond to requests for comment, while Rush Street declined to provide a statement. DraftKings cut ties with Kambi in 2021, and the company had no immediate comment on the fines. These violations highlight the importance of strict adherence to regulations in the rapidly growing sports betting industry. The Division of Gaming Enforcement in New Jersey is tasked with ensuring that sportsbooks and technology companies operate within the boundaries of the law to protect consumers and maintain the integrity of sports betting in the state.
The fines levied against DraftKings, Rush Street Interactive NJ, and Kambi serve as a reminder to all operators in the industry to uphold the highest standards of compliance. The Division of Gaming Enforcement will continue to monitor and enforce regulations to prevent similar violations from occurring in the future. As the sports betting market expands, it is crucial for companies to prioritize transparency and accuracy in their operations to avoid regulatory fines and protect consumers. The incidents involving unauthorized bets on concluded games highlight the need for robust systems and protocols in place to prevent such errors from happening again.
Overall, the fines issued by New Jersey regulators underscore the importance of strict adherence to regulations in the sports betting industry to maintain trust and credibility among consumers. Companies must take proactive measures to ensure compliance with state laws and regulations to avoid costly penalties and protect the integrity of sports betting. The Division of Gaming Enforcement will continue to investigate and penalize violations to uphold industry standards and safeguard the interests of both operators and consumers.
