Skip to main content

New Jersey Levies Fine Against DraftKings For Data Errors

Andrew Reid

Last Updated: July 9, 2024 11:44 AM EDT • 1 min 32 sec read.

Sports are shown on TVs behind the bar as guests enjoy the grand opening of DraftKings Sports & Social as we look at the fines levied against the sportsbook in New Jersey.
Sports are shown on TVs behind the bar as guests enjoy the grand opening of DraftKings Sports & Social in the Short North. Photo by: Adam Cairns/Columbus Dispatch/USA TODAY Network.

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.

Written By:
Andrew Reid
Andrew is a Publishing Editor at Sportsbook Review. He graduated from Acadia University with a degree in Kinesiology, working as a personal trainer and in injury rehab, and then attended the College of Sports Media in Toronto to attain a diploma in Radio and Television Sports Broadcasting. Andrew has been involved in the sports betting and fantasy sports space since joining the FNTSY Sports Network in 2014, where he worked as a producer, director, and occasional on-air talent on various shows focusing on sports betting and DFS content. Prior to joining SBR, he spent multiple years with the USA Today Network as an editor and writer. Living in Newfoundland, Andrew frequents grey market sportsbooks, but in the past, when he's lived in regulated areas, he's become well-versed with all of our best sportsbooks. As strictly a casual bettor, he enjoys making touchdown parlays with friends (bro-lays), sweating out golf cut parlays during majors, playing same-game parlays for fun, and chasing long-shot bets. He also enjoys using sportsbooks that have solid iGaming and casino platforms. As the old guy on staff, he has an affinity for industry news, which confuses some, but shh ... quiet ... the news is on.