DraftKings Penalized $100,000 for Financial Reporting Errors in New Jersey

The New Jersey Division of Gaming Enforcement has imposed a $100,000 fine on DraftKings due to the submission of inaccurate sports betting data to the state. These errors forced regulators to correct and re-post several months’ worth of financial information.

The inaccuracies primarily involved overstating the amount wagered on parlays and understating other wager categories. This led Resorts Digital, the online arm of Resorts Casino, to file incorrect sports betting tax returns for December 2023, January 2024, and February 2024.

“These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system,” stated Mary Jo Flaherty, Acting Director of the state Division of Gaming Enforcement, in a letter to DraftKings.

DraftKings recently released its Q1 2024 financial earnings, reporting revenue of $1.18 billion, a 53% increase year-on-year, while also posting an operating loss of $138.8 million. Although this is a reduction of over $200 million compared to last year's operating loss of $389.8 million, the company still has not achieved profitability.

New Jersey's March results revealed that PointsBet outperformed DraftKings, securing second place behind FanDuel.