Why Did The NJ Sports Betting Regulator Just Fine DraftKings?

Posted on April 8, 2021

DraftKings is getting an invoice in penalty from the NJ Division of Gaming Enforcement (DGE) over self-exclusion failings.

The sportsbook has been ordered to pay a $10,000 civil penalty for sending “promotional mailings” to 11 self-excluded individuals, the DGE announced Wednesday.

That’s in violation of New Jersey sports betting regulations, specifically N.J.A.C. 13:69G-2.4(b)1.

The order was dated March 18, although only made public this week.

What did DraftKings say?

DraftKings acknowledged the error in a statement.

The operator’s SVP of regulatory operations Tim Dent said:

“Nothing is more important than providing a safe experience for our customers. We remain committed to operating an industry-leading approach to customer protections.”

Previous issues in NJ sports betting

This is not the first time DraftKings suffered self-exclusion failings in NJ sports betting. In 2019, the DGE gave DraftKings a $2,000 civil penalty for sending promotional emails and direct marketing to self-excluded customers.

The same year, DraftKings paid another $5,000 fine. On this occasion, 54 customers who requested a cooling off period were able to place bets. DraftKings said a software glitch accidentally set the ‘cooling off’ period to zero days.

More recently, the company paid a $5,000 fine in Iowa for a similar issue, as well as a $3,000 fine in Indiana.

Self-exclusion snafus elsewhere

Accidentally marketing to self-excluded customers is an occasional failing in online gambling. It has warranted a much larger fine in other regulated jurisdictions around the world, particularly for repeat offenders

In 2018, for example, the UK Gambling Commission fined an operator $900,000 for sending emails to self-excluded customers. The commission also suspended licenses for firms who failed to put a nationwide self-exclusion program in place.

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Brad Allen

Brad has been covering the online gambling industry in Europe and the US for more than four years, most recently as the news editor at EGR Global.

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