New Jersey fines DraftKings $100K for inaccurate sports betting data

In a significant development, New Jersey gambling regulators have imposed a $100,000 fine on DraftKings for providing inaccurate sports betting data to the state. The regulators described this conduct as unacceptable and indicative of weaknesses in the company's business operations. The errors led to the need for corrected financial data to be posted for several months, a situation not seen in over a decade. The inaccuracies primarily involved misrepresenting the amount of money wagered on certain types of bets while understating other categories. Mary Jo Flaherty, the acting director of the state Division of Gaming Enforcement, expressed strong disapproval of DraftKings' actions in a letter dated June 16. The repercussions of the inaccurate data extended to Resorts Digital, the online division of Resorts casino, which submitted incorrect sports betting tax returns for specific months. DraftKings acknowledged the issue and stated that corrective measures have been implemented to ensure compliance with regulatory guidelines. The company attributed the errors to a coding mistake in a newly established database. Despite DraftKings' assertion that the errors did not impact taxable revenue and thus did not warrant immediate attention, the gaming enforcement division emphasized the critical nature of accurate data for tax reporting purposes. DraftKings has since rectified the coding error, conducted internal discussions on the matter, provided staff training, and enhanced monitoring procedures. The company's commitment to addressing the issue and cooperating with state regulators has been reiterated in their response to the situation. For more updates on this story, follow Wayne Parry on Twitter at www.twitter.com/WayneParryAC.