Despite having arguably the premier regulatory system in place, sportsbooks in New Jersey are still finding ways to stumble.
According to the Division Gaming Enforcement, David Rebuck, director of the DGE, imposed several penalties against two NJ sports betting operators late last month.
Actions of the Director included a $7,500 fine levied against DraftKings Sportsbook as well as a $2,000 penalty against Rush Street Interactive, owner of BetRivers Sportsbook.
While relatively minute in terms of total money owed, the penalties themselves are noteworthy.
DraftKings NJ fined for accepting action from self-excluded bettor
The first notable fine went to DraftKings Sportsbook NJ, which, according to the DGE, allowed a self-excluded individual to create an online sports betting account and place bets.
Rebuck’s action, dated Oct. 24 and referring to a complaint filed on Aug. 15, cited NJAC 13:690-1.4(j)(3), which states:
“Internet and mobile gaming systems shall employ a mechanism that places an Internet or mobile gaming account in a suspended mode:
- When initiated by a licensee that has evidence that indicates: i. Illegal activity; ii. A negative patron account balance; or iii. A violation of the terms of service has taken place on an authorized patron’s Internet or mobile gaming account.
As a result of the offense, Rebuck ordered DraftKings to pay a $7,500 fine.
Rush Street violates sports pool regulations
A day later, in an order dated Oct. 25, Rebuck outlined a violation committed by Rush Street Interactive, which runs BetRivers Sportsbook NJ.
According to the DGE, Rush Street violated the regulatory body’s rules for unapproved events in March 2020 and April 17, 2020, through Jan. 19, 2021. In addition – on July 18, 2021, and Sept. 18, 2021 – Rush Street committed a failur to comply with NJAC 13:69N-1.9 and NJAC 13:69N-1.11.
The first regulation requires a “sports pool operator” to “establish and maintain a sports pool lounge of sufficient square footage to promote optimum security of the facility.” That includes security and surveillance equipment. The second, 13:69N-1.11, refers to internal controls. The division calls for sports pool operators to file details of their internal controls “for all aspects of sports pool wagering operations.” Those operators cannot begin sports pool wagering until the DGE gives approval of those internal controls.
Rebuck issued a fine of $2,000 for Rush Street as a penalty.
