Betting firm FanDuel incurs a fine of $125,000 from Iowa's Racing and Gaming Commission for regulatory violations.
FanDuel, the popular online sports betting platform, has been hit with a $125,000 fine by the Iowa Racing and Gaming Commission. The penalty comes after the company was found to have violated sports betting regulations and failed to provide adequate responsible gambling options in the state.
The fine, announced recently, is an addition to the $30,000 penalty FanDuel received earlier for the lack of responsible gambling options. This brings the total penalty to $155,000.
The violations were numerous, with FanDuel allowing illegal bets on various events such as the Super Bowl, golf tournaments, Olympic events, and certain soccer matches. The total value of these prohibited wagers amounted to $89,000 on golf and $62,000 on Olympic events, with the smallest violation amounting to $330.
The Iowa Racing and Gaming Commission Chair, Daryle Olsen, expressed disappointment over the frequency of offenses in a short time span, emphasizing that while FanDuel is a major operator in the state, higher standards are expected.
In response, FanDuel spokesman Ben Roth acknowledged the violations, accepting responsibility and stating that the company did not meet its own high standards. FanDuel has committed to rectifying the problems, refunding customers affected by illegal bets, and forfeiting any resulting revenue from the infractions.
To prevent future violations, FanDuel has enhanced workforce training, implemented detailed checklists and runbooks for content deployment, and increased automation to reduce human error. These remediation efforts are aimed at ensuring compliance with the regulations moving forward.
According to Radio Iowa, the lack of responsible gambling options was one of the issues cited in the settlement. The settlement was reached on an unspecified date after June 11, when Roth represented FanDuel before the Iowa State Racing and Gaming Commission.
Despite the penalties, FanDuel remains a significant player in the Iowa sports betting market. The company continues to work towards improving its services and ensuring compliance with all regulations to maintain its position in the industry.
The additional $125,000 fine for FanDuel is not only due to sports betting violations but also the lack of responsible gambling options, as stated in the Iowa Racing and Gaming Commission settlement. In the future, FanDuel aims to prevent such issues by intensifying employee training, implementing checklists, and increasing automation in their sports-betting operations.
