FanDuel Receives $350,000 Fine in Ontario Due to Negligence in Reporting Suspicious Activity

FanDuel Canada has been fined $350,000 after the Alcohol and Gaming Commission of Ontario (AGCO) found that the sportsbook had failed to identify and report suspicious and unusual betting activity, as well as match fixing. 

After reviewing several matches from the Czech Table Tennis Star Series between Oct. 24 and Nov. 30, AGCO found that FanDuel had accepted 144 bets from three Ontario sports betting player accounts that showed indicators of match-fixing. Despite the warning signs, AGCO found that FanDuel had not met its obligations to identify and report the activity. 

AGCO also found several unusual wagering activities that should have prompted action from FanDuel, including shifts in betting activity and behaviour, betting lines on matches involving specific athletes, and bets concentrating on athletes losing matches. 

Other red flags identified included accounts with a near-perfect win rate, as well as synchronized wagering across accounts.

Additionally, the activity was found to have occurred after a previous warning had been issued about the integrity risks of the particular tournament series.

According to AGCO, the best sports betting sites in Canada operating in Ontario and Ontario online casinos are considered the first line of defence in terms of integrity for its sports-betting market, and FanDuel's failure to report can impact the ability of regulators, police services, and sports authorities worldwide to identify and prevent match-fixing. 

“In an era of heightened scrutiny on sports integrity, iGaming operators must be vigilant and proactive in detecting suspicious betting activity and taking appropriate steps to protect their patrons. We will continue to hold all regulated operators accountable to these standards. Protecting fair play is essential to maintaining public trust,” said Dr. Karin Schnarr, Chief Executive Officer and Registrar, AGCO, in a statement.

FanDuel Predicts launches in five states 

While FanDuel is facing scrutiny in Canada, across the border, it has just announced the launch of its FanDuel Predicts app in five states, following in the footsteps of its rival, DraftKings Predict. 

Prediction market apps enable users to purchase event contracts on the outcomes of political, cultural, and, most controversially, sports events, providing FanDuel with access to states where it was previously unable to operate because sports betting was illegal. 

This is due to prediction markets being certified by the Commodity Futures Trading Commission, rather than being regulated by state regulators, which allows them to operate across states rather than adhere to individual state laws. 

While it plans to roll out the markets in all states, currently only customers in Alabama, Alaska, South Carolina, North Dakota, and South Dakota can access the markets, with sports events contracts only being available in states where online sports betting is not legal.