New Jersey Levies Fine Against DraftKings For Data Errors

One of our best sports betting sites in one of the nation's largest betting markets has been issued a stiff fine to go along with a heavy rebuke of recent inaccurate sports betting data. 

Regulators in the New Jersey sports betting market have fined DraftKings for what it refers to as "unacceptable conduct." The operator had been sending inaccurate sports betting financials to the Garden State for several months. The result is a $100,000 fine, which is surely enough to get the attention of the sportsbook and iGaming platform.

The errors

The sports betting behemoth, which produces one of the largest New Jersey sports betting apps, has needed to correct several months' worth of data. That's a first since legalization was passed in the state. ;

It turns out DraftKings has been overstating the amount of money wagered on parlays and under-reporting other categories.

“These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system," Mary Jo Flaherty, the acting director of the state Division of Gaming Enforcement, wrote in a June 16 letter.

New Jersey became aware of the issues after similar errors were reported in the Oregon sports betting and Illinois sports betting scenes. 

The fix

It all boils down to a coding error that incorrectly classified bets. DraftKings believed the error would come with no revenue or tax implications, but that wasn't the case. 

Resorts Digital, an arm of Resorts Casino, is a partner of DraftKings, and those inaccurate filings resulted in incorrect sports betting tax returns for December 2023, as well as January and February 2024. 

DraftKings has reported it addressed the coding error and corrected and reposted the incorrect filings.

“We value our relationship with the DGE and are committed to ensuring compliance with all regulatory guidelines," DraftKings told Covers.

Garden State

New Jersey is one of the nation's largest sports betting markets, and it features a host of New Jersey sportsbook promos. However, that didn't stop the traditional spring/summer slowdown from hitting the state, as it reported less than $1 billion in handle during May, the first time since August the Garden State dipped under that total.

A state legislator is also pushing for the legalization of wagering on in-state college teams, which would further expand the market.

The state features a thriving iGaming market too, with NJ online casinos available to residents. DraftKings operates one such casino. 

If you want to check out the sportsbook or casino, you can use our DraftKings promo code or DraftKings Casino promo code.