DraftKings, a popular sportsbook based in Boston, Massachusetts, has found itself in hot water after mistakenly sending out over 1.2 million unsolicited emails to residents of the state. The Massachusetts Gaming Commission has taken action by involving the investigations enforcement bureau (IEB) to look into the matter.
According to reports, DraftKings sent out a flood of erroneous emails in August, including 184 recipients who were on a voluntary exclusion list. The emails were related to an upcoming “bonus bet” for wagering on golf, but many of the recipients were not even registered with DraftKings and had not placed any bets on the golf tournament.
The MGC unanimously agreed to escalate the case to the IEB, and DraftKings is set to face the music at an adjudicatory hearing. General Counsel for the IEB, Zachary Mercer, stated that DraftKings sent out a total of 1,230,520 emails to Massachusetts residents, including those on the exclusion list. If the adjudicators determine that these emails constitute advertising, marketing, or branding, DraftKings could be found in violation of Massachusetts gaming laws.
Mercer also pointed out that some recipients were not even registered with DraftKings, indicating that the emails were sent in error to individuals on company marketing lists. He described it as sending out “essentially an entire database worth of email addresses.” Additionally, MGC Commissioner Nakisha Skinner has instructed the IEB to investigate whether any of the email recipients were under the legal gambling age of 21.
The emails in question informed recipients about a “dead heat reduction” used to determine the outcome of a golf tournament where multiple golfers tied for the same winning position. Recipients were promised a “bonus bet” equal to the amount of their original wager as a one-time courtesy. However, many of the recipients who were registered with DraftKings had never placed a bet on the golf tournament, leading to confusion and concerns about account security.
While DraftKings acknowledged its mistake and communicated with users about the error, it claimed that it had sent out more emails than intended. The company now faces potential sanctions and scrutiny from both the IEB and the MGC for its actions. The investigation will likely focus on whether DraftKings violated state laws by sending out unsolicited emails and potentially targeting individuals who were not of legal gambling age.
In conclusion, DraftKings’ mishap with the mass email campaign has raised concerns about privacy, compliance with gaming regulations, and responsible marketing practices. The repercussions of this incident remain to be seen as the IEB continues its investigation and the sportsbook prepares to defend itself in front of the regulatory authorities.