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DraftKings got into a major scandal in New Jersey

New Jersey officials imposed a $100,000 fine on DraftKings for submitting inaccurate sports betting data to state regulators. The authorities criticised the company's actions as unacceptable and indicative of its inadequate business practices.

DraftKings' errors resulted in regulators being forced to release incorrect financial information for several months. Authorities have reportedly not encountered such issues in over a decade. The discrepancies mainly stemmed from inflated betting figures.

“This type of blunder and failure will not be tolerated in New Jersey's gaming regulatory system,” Mary Jo Flaherty, acting director of the state Division of Gaming Enforcement, wrote in a letter to DraftKings.

DraftKings informed New Jersey regulators that an error in the new database update caused certain bets to be misclassified. This led to inaccurate information, including incorrect tax returns filed by Resorts Digital for sports betting in late 2023 and early 2024. The documents had to be fixed and reissued after several weeks.

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