DraftKings Faces Fine in Massachusetts for Offering Illegal Tennis Bets
DraftKings, a popular bookmaker in the United States, is at risk of receiving a fine in the state of Massachusetts for offering bets on a tennis tournament where betting was not allowed. The company accepted 864 bets on a UTR Pro Tennis Tour event, which violated the state’s regulations.
According to DraftKings, there was a miscommunication between the compliance and trading teams, resulting in a list of sporting events from another state being copied, where betting on this particular tournament was permitted. However, the trading team failed to consult the compliance department, which has the final say on the bets to be offered.
DraftKings informed the Massachusetts state regulator on March 23, 2023, leading to a hearing on Monday, July 24, 2023. During the hearing, a representative from DraftKings provided insight into the complex internal processes involved in offering bets. The spokesperson emphasized that DraftKings had a clean record in other states and that this mistake was unintentional and based on miscommunication.
The hearing was not open to the public due to the sensitivity of the information discussed. DraftKings had specifically requested this, and the US watchdog agreed. After the hearing, a decision will be made regarding any sanctions and their nature. Considering similar cases in the past, DraftKings is likely to receive a fine.
In total, DraftKings collected $7,867 when it allowed the 864 illegal tennis bets on its website for the UTR Pro Tennis Tour.
DraftKings’ Battle with Fanatics for PointsBet Acquisition
Meanwhile, DraftKings engaged in a fierce battle with Fanatics to acquire PointsBet’s US operations. Fanatics initially made an offer of $150 million (€138.5 million) for the Australian gambling company.
DraftKings then surpassed that offer by far, bidding a whopping $195 million (€178 million) to become the owner of PointsBet. However, DraftKings ultimately did not succeed in acquiring the company. The PointsBet Board of Directors advised shareholders to go with Fanatics, which they did, but not before Fanatics made an improved offer.
Please note that CasinoNieuws.nl has partnerships with online gambling providers and uses affiliate links. If you create an account through such a link, we receive a commission without any additional cost to you. Our partners do not have any influence on the editorial content and reviews of CasinoNieuws.
