NJ fines DraftKings $150,000 for allowing proxy bets

ATLANTIC CITY, NJ (AP) – New Jersey gambling regulators fined DraftKings $150,000 for allowing a Florida man to place online sports bets from his home by having a friend in New Jersey place bets on his behalf.

In a public action Wednesday, the New Jersey Gambling Enforcement Unit announced that it has reached a settlement with the Boston-based. DraftKings pertaining to so-called proxy betting events that are prohibited under state regulations.

DraftKings He agreed to a number of corrective actions, including voiding the 21 still pending bets made by the Florida man, closing his account for proxy betting, and better training his staff to recognize and prevent such activity.

“We are constantly trying to improve our systems to detect violations of our terms of use” DraftKings He told the Associated Press on Thursday. “In this case, our systems were unable to detect a violation of our terms of use. We took corrective action to address it.”

The company declined to comment further and did not make company officials available for talks.

The case focuses on a Florida man known as a big gambler. created an online DraftKings He had an account in 2019 and it was not unusual for him to bet $50,000 on a single game or event.

Apart from their names, court documents did not release any identifying information about the man or his friend, including their hometown, and the AP could not find them to seek comment.

DraftKings According to geolocation data cited in court documents, he noticed that the Florida man’s account had been accessed by a proxy user when he logged in minutes from Florida and then New Jersey. The company gave him a written warning.

But he also verbally briefed the Florida man and his friend who had a proxy bet on his behalf that they could still do it, provided he waited at least two hours after his friend last used the account to place the bet. to court documents.

New Jersey officials also said the Florida man was a guest. DraftKings He bet on the game through his friend in the presence and knowledge of his friend from the corporate suites at the Super Bowl in Miami in February 2020. DraftKings employee.

The editors also said DraftKings He was aware that the Florida man and his friend used the same arrangement to place bets in Pennsylvania after the state was approved. DraftKings to offer online sports betting.

The company suspended its account in October 2020 due to proxy gambling.

Copyright © 2022 The Washington Times, LLC.

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