The Massachusetts Gaming Commission (MGC) has fined DraftKings $450,000 for repeated violations of state laws and regulations prohibiting the use of credit cards in sports wagering.
Between 10 March 2023 and 13 February 2024, 1,160 unlawful wagers worth $83,667 were placed by 218 customers using credit card-funded deposits, despite clear statutory and regulatory bans under General Law c. 23N § 13(d) and 205 CMR 247.07(7) & 248.10(3).
Key findings by the MGC:
- DraftKings failed to implement credit card restrictions despite receiving explicit guidance from the MGC in January 2023.
- Three distinct periods of noncompliance occurred, even after multiple “fixes” were promised and certified by DraftKings executives.
- DraftKings successfully blocked credit card wagers in other states, undermining its claims of regulatory misinterpretation.
Beyond the fine, DraftKings must:
- Return the $83,667 in unlawful wagers to affected customers.
- Submit a corrective action plan ensuring directives are effectively communicated internally.
- Undergo an independent third-party audit to verify compliance since licensing.
The case highlights the growing pressure on U.S. sportsbooks to maintain airtight compliance systems as legal betting continues to expand.
