The Massachusetts Gaming Commission (MGC) has issued its largest ever fine to a sportsbook operator after discovering that DraftKings accepted credit card deposits from players, violating state laws.
The $450,000 penalty relates to three separate self-reported violations in 2023 and 2024. In explaining the reasoning behind the faults, DraftKings said one was due to an internal miscommunication, another because of a failed software fix, and a final issue resulted from its Pools product allowing for credit card wagers.
transgressions totaled more than $83,000 across 218 customer accounts
The transactions involved in the transgressions totaled more than $83,000 across 218 customer accounts. The MGC has ordered DraftKings to show proof that it refunded all the cash and that it hasn’t accepted any other credit card payments.
During a hearing on the matter in November, DraftKings highlighted some confusion around the rules in Massachusetts regarding credit card gambling. The sportsbook was supposedly under the impression that customers could fund their accounts in another state with a credit card and use the balance to wager in Massachusetts.
Only a handful of states ban credit card deposits, with the goal of this restriction to stop people from going into debt when funding their accounts with money they don’t currently have.
