DraftKings, Rush Street, and Kambi fined in New Jersey

Neha Soni December 27, 2024

SiGMA news

The New Jersey Division of Gaming Enforcement (DGE) has levied a combined fine of $40,000 against DraftKings, Rush Street, and Kambi. The companies face the penalty owing to a string of regulatory breaches.

DraftKings was levied $20,000 in fine for taking wagers on the outcome of Russian basketball matches over nine months in 2020 and 2021. In addition, the company also accepted wagers on unapproved table tennis matches.

The company did not meet regulatory requirements for certain pre-season National Football League (NFL) bets in 2022. Over $61,000 that was wagered on Russian basketball and $6,700 on the NFL has been voided and refunded to customers.

Rush Interactive faced a fine of $10,000 by the DGE for accepting bets on concluded events. This included 16 wagers on a college basketball game that had already ended and bets on 2022 Magic City Jai Alai games with known results. The company also offered pre-match odds on a PGA event after it started.

Sports betting technology company Kambi also faced a fine of $10,000. Kambi has acknowledged multiple errors, including a connectivity issue that allowed bets on finished games and misclassification of unapproved events as available for wagering in New Jersey.

All the three companies have introduced remedial measures for the respective fines, including Kambi retraining its staff and updating its procedures to prevent future occurrences.

DGE’s stricter enforcements

The penalties come as part of the broader enforcements by the DGE to ensure compliance in New Jersey’s growing sports betting market. This includes William Hill receiving a $20,000 fine for accepting wagers on completed college basketball games last month. Similarly, Amelco (PlayUp) was reprimanded by the regulator for accepting a $1 bet on the 2024 presidential election.

Recent data finds most types of wagering has seen significant rise; with Atlantic City casinos’ November revenue climbing 4 percent year-on-year. Online casino revenue jumped 25 percent, and sportsbook recorded a 24 percent hike. DGE Chair James Plousis noted that the month was the “highest November result in 11 years.”

Recently, New Jersey’s gambling sector recorded its strongest November in 11 years. New Jersey’s Division of Gaming Enforcement (DGE) has reported a total gaming revenue of $556.9 million in November 2024. This marks a 15.4 percent year-on-year (YoY) increase, driven by steady growth across casinos, iGaming, and sports betting.

Therefore, as New Jersey’s gambling industry expands, the DGE is currently under immense pressure to balance market growth and strict regulation enforcement. The recent fines underscore DGE’s commitment to ensuring fairness and compliance in New Jersey’s gaming markets.