Massachusetts online sports betting launched on March 10, 2023, the day the first instance of a DraftKings customer depositing funds via credit card was reported. It would be another four months before the company’s error would be remedied, based on the provided information.
A total of 218 users placed 242 bets worth a total of $83,663.92 with funds from out-of-state credit cards. DraftKings self-reported the issue on May 31, 2023, but did not immediately fix the issue as a software update failed to stop credit card deposits.
The Investigations and Enforcement Bureau (IEB) will handle the investigation into the two newly-reported incidents.
“I leave it now for IEB to do their job and for legal to coordinate with DraftKings. We’ll stand ready for this hearing on this very critical matter,” said MGC chair Cathy Judd-Stein.
The case may still have more twists and turns even after these two investigations are closed. According to Justin Stempekc, MGC deputy counsel, DraftKings, headquartered in Boston, also permitted customers to make credit card deposits from August-September in 2023 and again in January 2024.
A new hearing will not be held until all of the companies’ infractions and case evidence have been brought to light, and the IEB’s investigations are concluded.
A date for the next hearing has not been announced.
“I’m hoping that along with IEB’s continued investigation, we understand from the operator and have assurances that this is the extent of it,” said MGC Commissioner Nakisha Skinner. “It is troubling that we first learned about this issue almost a year ago that there have been new and frequent developments. I want to be assured that we have all the facts before us, to consider them, and consider them at the same time instead of piecemeal.”
