Massachusetts regulators need more time to decide on an appropriate ruling for DraftKings’ allowing hundreds of improper credit card deposits.
The Massachusetts Gaming Commission (MGC) convened an adjudicatory hearing Wednesday to review DraftKings allegedly accepting funds in Massachusetts that were deposited elsewhere via credit card. These events violate the Massachusetts sports betting statute that specifically prohibits the use of credit cards to make bets or fund sports betting accounts.
The Boston-based online sportsbook operator originally notified the MGC in May 2023 that it had allowed funds deposited by credit card in other jurisdictions to be used for sports betting in Massachusetts. DraftKings also alerted the commission on Wednesday about two additional events of non-compliance for similar deposits.
The presentation of this new evidence triggered the commission to defer the decision on this matter to a later, undetermined date for the Investigations Enforcement Bureau (IEB) to investigate more thoroughly.
Voices weigh in
Commissioner Jordan Maynard suggested that “the IEB do a full-throated investigation” and then reconvene in the future “to put this to bed all at once.” Commissioner Nakisha Skinner supported this assertion, and also expressed concern that there have been “new and frequent developments” after DraftKings initially made these infractions known.
“I’m also hoping that along with IEB’s continued investigation that we understand from the operator and have assurances that this is the extent of it,” said Skinner, who added that it’s “troubling” to still be hearing about new infractions on this matter nearly a year after it was originally reported.
Cathy Judd-Stein, Chair of the MGC, said that “getting this in front of us sooner than later is important” to fully understand what took place and what DraftKings has done to mitigate “this very critical matter” moving forward.
Severe action looming?
The MGC is notoriously strict with how it regulates the Massachusetts sports betting industry, and it seems likely they will stay on trend when they do conclude this case. When DraftKings reported their transgressions last year, they claimed that 218 users placed 242 wagers totaling $83,663.92 involving out-of-state credit card funding.
The company had also told the regulators in June 2023 that a software update was blocking out-of-state credit card funding, yet the two new infringements reported Wednesday took place in August/September 2023 and also in January 2024.
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