DraftKings

  • DraftKings has been fined $150,000 for allowing proxy betting from Florida.
  • DraftKings voided 21 proxy bets from the Florida man.

ATLANTIC CITY, N.J. – The state of New Jersey has fined DraftKings sportsbook a whopping $150,000 for allowing a man in Florida to place bets through a proxy.

Proxy betting in New Jersey is prohibited under the state regulations which is why it was such a hefty fine.

Following the fine, the sportsbook went on to void 21 pending bets that the man had placed from outside of the state and claims that this was a mistake on their system.

“We strive to continuously improve our systems to detect violations of our terms of use—In this instance, our systems failed to detect the violation of our terms of use. We have taken corrective action to address that,” said the sportsbook in a statement.

Although the sportsbook says this was a mistake, the man created his account in 2019 and has been on high roller sports bettors since. Meaning it was normal for him to wager $50,000 on a single game. To make matters even worse, the Florida man was invited to Super Bowl LIV by DraftKings in their company suite. The mans account was suspended back in 2020 and the fine prior to the recent fine.

A Similar Situation

In 2021, a similar situation in Tennessee with Action 24/7 sportsbook which led to their suspension in the state. The legal sports sportsbook was found guilty of money laundering, wire fraud, and credit card fraud. They also had counts of proxy betting.

Comparing this back to DraftKings, Tennessee handled the situation with much more force on a much smaller company than DraftKings.

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