Three prominent companies in the sports betting industry, DraftKings, Kambi, and Rush Street Interactive, have been slapped with fines totaling $40,000 by the New Jersey Division of Gaming Enforcement for various regulatory violations. The violations include accepting bets on unsanctioned events and technical errors resulting in bettors placing wagers on games that had already concluded.
DraftKings was hit with a $20,000 penalty for accepting bets on unsanctioned events between 2020 and 2022, which included Russian basketball games. Kambi, a provider of sportsbook technology to various operators, received a $10,000 fine for failing to ensure that Rush Street Gaming was no longer accepting bets on certain markets where technical errors led to bettors placing wagers on finished games. Kambi attributed one of the errors to a connectivity issue and the other to human error.
Rush Street Interactive, on the other hand, also faces a $10,000 fine for the same betting market errors. The fines highlight the importance of strict adherence to regulations in the rapidly growing sports betting industry, where technical glitches and human errors can have costly repercussions.
The penalties serve as a reminder to companies operating in the sports betting space to maintain high standards of compliance and integrity to avoid facing similar consequences. The New Jersey Division of Gaming Enforcement is committed to upholding the integrity of the sports betting industry in the state and will continue to monitor and enforce regulations to ensure a fair and transparent betting environment for consumers.
Overall, the fines imposed on DraftKings, Kambi, and Rush Street Interactive underscore the regulatory scrutiny faced by companies in the sports betting sector and emphasize the need for strict compliance with regulations to maintain the integrity of the industry. The penalties serve as a warning to other operators to prioritize regulatory compliance and avoid engaging in activities that could lead to fines and reputational damage.