Massachusetts Gaming Commission demands explanation from DraftKings over unauthorized bets
The Massachusetts Gaming Commission has announced a hearing where DraftKings will be required to provide an explanation for accepting unauthorized bets on a tennis event
The Massachusetts Gaming Commission (MGC) is taking a stern stance on DraftKings' violations despite the operator's efforts to remain transparent and compliant. After discovering that it had unlawfully accepted unauthorized bets on a tennis event, DraftKings promptly self-reported the breach, demonstrating its commitment to accountability.
Recognizing the company's responsible behavior in reporting the violation, the MGC has refrained from imposing penalties thus far. Initially considering handing the matter to the Investigations and Enforcement Bureau for further investigation and potential penalties, the MGC ultimately decided to address the issue in a public setting. By doing so, the commission aims to provide other operators with valuable insights and prevent similar mistakes in the future.
To this end, the MGC has announced that it will hold a hearing where DraftKings will be required to explain the circumstances surrounding its violations. The breach involved DraftKings accepting bets on UTR Pro Tennis without verifying whether it had authorization to do so. A total of 864 wagers were placed, amounting to a handle of $7,867.
DraftKings attributed the mistake to copying a betting menu from a different market without verifying whether all included markets were authorized in Massachusetts, thus inadvertently violating local rules.
The commission expressed its dissatisfaction upon learning about DraftKings' violation. Commissioner Eileen O'Brien expressed annoyance at the company's failure to verify the local rules when copying its betting menu, questioning whether it was an act of neglect or something more.
Cathy Judd-Stein, the chair of the Massachusetts Gaming Commission, also expressed frustration with DraftKings. She emphasized the commission's responsibility to prevent similar errors and stressed the importance of communicating the issue to other companies, reminding them of the expectation to adhere to regulations.
While acknowledging DraftKings' proactive reporting of the breach, Judd-Stein underlined the need for operators to recognize the commission's serious approach to such matters.
Commissioner Jordan Maynard expressed the desire for the MGC to reach an appropriate decision promptly, indicating the importance of a timely resolution.