Regulatory authorities in New Jersey have issued fines totaling $40,000 to three entities involved in sports betting. The penalties stem from various infractions, including accepting wagers on unauthorized events and games that had already concluded. DraftKings received a fine of $20,000, while Rush Street Interactive NJ and the technology firm Kambi each faced a $10,000 penalty. These violations highlight issues with oversight and connectivity errors that led to improper betting activities.

The incidents involved multiple instances where bets were accepted after game outcomes were known or on unapproved sporting events. Specific cases included college basketball and golf matches where bets were placed after the conclusion of events. Additionally, DraftKings was penalized for offering wagers on Russian basketball and table tennis matches not sanctioned by the state. Measures have been taken to rectify these issues, including retraining staff and updating guidelines.

Penalties for Post-Event Betting and Connectivity Issues

Several fines were levied against companies for accepting bets on events that had already ended. This section explores how connectivity problems and human error contributed to these oversights. It also covers the steps taken by the companies to prevent future occurrences.

In November 2021, Rush Street Interactive NJ inadvertently accepted 16 bets totaling $1,523 on a college basketball game between the University of North Carolina-Asheville and Tennessee Tech University after the match had concluded. Similarly, in March 2022, Rush Street took seven bets worth nearly $2,900 on Magic City Jai Alai games after results were already known. In another instance, the company accepted 13 wagers worth $8,150 on a Professional Golf Association match after it had started. These lapses were attributed to connectivity issues and trader errors. Kambi, the technology provider, acknowledged these mistakes and has since updated its protocols and provided additional training to its staff.

Unapproved Event Wagering and Regulatory Compliance

This section delves into the fines imposed for accepting bets on unauthorized sporting events. It examines the causes behind these infractions and the measures taken to ensure compliance moving forward.

DraftKings faced a $20,000 fine for accepting bets on unapproved events, including Russian basketball for nine months in 2020 and 2021. The company eventually voided over $61,000 in bets and refunded the money to customers. In 2020, DraftKings also accepted 484 wagers on unapproved table tennis matches due to incorrect configurations by Kambi. Furthermore, in February 2022, DraftKings offered pre-season NFL bets involving specific players without providing necessary details to the state, leading to 182 wagers worth nearly $7,000 that were later voided and refunded. Both DraftKings and Kambi admitted to misidentifying certain leagues as approved for wagering and have implemented stricter verification processes to avoid similar issues in the future.