New Jersey Fines DraftKings $100,000 Over Inaccurate Revenue Reports

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Written By Giovanni Shorter | Last Updated
DraftKings NJ Fine

Sportsbook and online casino giant DraftKings has been fined $100,000 by the New Jersey Department of Gaming Enforcement. According to the NJDGE, the fine is due to DraftKings reporting inaccurate parlay wagers data in NJ. This led to Resorts Digital, the online arm of Resorts Casino, filing inaccurate monthly sports betting tax returns for New Jersey.

DraftKings NJ Fine Explained

According to the gambling regulators, DraftKings mistakenly overstated the amount of money wagered on multi-tiered bets or parlays. The inaccuracies were reported between December 2023 and February 2024. Reports also state that DK understated other categories of wagers. The NJDGE called the errors unacceptable.

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

Flaherty sent the letter to DraftKings on June 16, but it was just recently made public. The documents have since been corrected and reposted.

In early March, the Office of Financial Investigations was made aware of inaccuracies in DraftKings’ reports in Illinois and Oregon, which led to them suspecting the New Jersey reports as well. DraftKings told regulators in New Jersey that the issue was caused by a newly created database. This database contained a coding error, resulting in a “miscategorization of certain bets,” according to the state.

DraftKings Response To The DGE

DraftKings has responded to the NJDGE regarding the mishap. DK issued a letter to the state on March 29, stating that they did not give the matter urgent attention. The company believed the errors didn’t affect taxable revenue. This is why DraftKings did not immediately report the issue, according to the state.

“We value our relationship with the DGE and are committed to ensuring compliance with all regulatory guidelines,” said the company in a statement. “There was an error in the reporting of our wagering mix breakdown to the state that we have corrected by implementing additional controls.”

DraftKings has informed New Jersey regulators that the coding error has been corrected. Additionally, DK has discussed the error internally and trained staff while creating additional monitoring.

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