The New Jersey Division of Gaming Enforcement continues to crack down on NJ sportsbooks, with FanDuel Sportsbook the latest to stand on the receiving end of regulatory punishment.
According to the DGE, FanDuel accepted bets in April 2022 on mixed martial arts fights that had taken place a week earlier.
State regulators fined FanDuel $2,000 for the indiscretion. In addition, the sportsbook reportedly paid out over $230,000 to settle the bets.
FanDuel has not commented on the fine or violation.
FanDuel Sportsbook accepted 34 bets on week-old PFL fights
According to reports, FanDuel accepted 34 bets for Professional Fighters League (PFL) matches on April 1, 2022. However, the fights actually occurred on March 25.
In a letter, Gina DeAnnuntis, the New Jersey deputy attorney general, indicated that FanDuel Sportsbook NJ was not made aware by its data providers that the PFL fights were week-old recordings. The operator’s trading team created its own betting markets for the fights based on information FanDuel directly acquired from the PFL.
On April 1, 2022, FanDuel informed New Jersey regulators that it had taken 26 online bets and eight additional in-person wagers totaling over $190,000 on those fights.
The International Betting Integrity Association, which monitors suspicious betting activity and patterns, then notified FanDuel that the PFL fights took place a week earlier.
The DGE issued the fine on Jan. 2, 2024, but it was not made public until this week. In addition to the fine and the $230,000 payout, FanDuel was also ordered to update its internal controls to avoid repeating this mistake.
Another NJ sports betting penalty issued by DGE
Just last year, the DGE issued a fine to another New Jersey sportsbook after discovering that PointsBet had had accepted bets on soccer games that had already taken place.
The Associated Press provided details on a similar matter, noting that 86 bettors wagered on a match that occurred a day earlier. Those bets were voided, and both Rush Street Interactive and Kambi were ordered to pay $1,000 fines.
Of course, this FanDuel punishment comes on the heels of an even bigger indiscretion.
DraftKings was found to have filed false revenue reports to the state, resulting in a massive $100,000 penalty that is believed to be the largest fine issued by the DGE since sports betting went live in 2018.
