Saturday, December 28, 2024

DraftKings, Rush Street, and Kambi Face Fines in New Jersey


The New Jersey Division of Gaming Enforcement (DGE) has levied a combined $40,000 in fines against two major sportsbooks and one technology provider for a string of regulatory breaches. This development closely follows similar penalties against William Hill and Amelco last month as the state regulator remains vigilant for any lapses in compliance.

The Companies Have Addressed These Issues

DraftKings received a $20,000 fine for taking wagers on the outcome of Russian basketball matches over nine months in 2020 and 2021. The company also accepted wagers on unapproved table tennis matches and failed to meet regulatory requirements for certain pre-season NFL bets in 2022. More than $61,000 wagered on Russian basketball and $6,700 on the NFL has been voided and refunded to customers.

Rush Street Interactive NJ also faced scrutiny as the DGE issued a $10,000 fine, penalizing the operator for accepting bets on concluded events. These included 16 wagers on a college basketball game that had already ended and bets on 2022 Magic City Jai Alai games with known results. Additionally, the company offered pre-match odds on a PGA event after it had started.

Another $10,000 fine went to sports betting technology company Kambi, which acknowledged multiple errors, including a connectivity issue that allowed bets on finished games and misclassification of unapproved events as available for wagering in New Jersey. Kambi indicated that it retrained its staff and updated its procedures to prevent future occurrences. Draft Kings and Rush Street also introduced remedial measures.

Recent Violations Follow a Common Theme

These newest penalties are part of DGE’s broader enforcement efforts to ensure compliance in New Jersey’s fast-growing sports betting market. Last month, William Hill received a $20,000 fine for taking bets on completed college basketball games. Amelco (PlayUp) also got in hot water with the regulator for accepting a $1 bet on the 2024 presidential election.

Such strict enforcement is necessary for fostering a healthy and responsible gambling sector. Recent data shows significant increases across most types of wagering as Atlantic City casinos’ November revenue rose 4% year-on-year. Online casino revenue soared 25%, while sportsbooks recorded a 24% increase. DGE Chair James Plousis noted that the month was the “highest November result in 11 years.

As New Jersey’s gambling industry expands, the DGE faces mounting pressure to balance market growth and strict regulation enforcement. The fines against DraftKings, Rush Street, Kambi, and others underscore the authority’s commitment to fairness and compliance in one of the nation’s most dynamic gaming markets.



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