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Fanduel faces penalties for failing to adhere to regulations in Iowa and Massachusetts

Regulatory authorities in Iowa and Massachusetts are taking action against FanDuel, imposing fines due to alleged unauthorized bets and violations of responsible gaming guidelines.

Fanduel faces penalties for violating rules in Iowa and Massachusetts
Fanduel faces penalties for violating rules in Iowa and Massachusetts

Fanduel faces penalties for failing to adhere to regulations in Iowa and Massachusetts

In a series of regulatory actions, online sports betting platform FanDuel has been fined by gaming commissions in Iowa and Massachusetts for multiple violations of sports betting rules.

According to reports, FanDuel, one of Iowa's largest operators, has been fined $125,000 by the Iowa Racing and Gaming Commission for five separate infractions. These violations included accepting prohibited wagers on events such as the Super Bowl, select soccer matches, and golf tournaments. The company's counsel director, Ben Roth, admitted falling short of expectations before the Commission on 11 July.

Similarly, in Massachusetts, FanDuel was fined $10,000 for accepting prohibited bets on Boston College's NCAA performance before the team had qualified. The Massachusetts Gaming Commission also issued another $15,000 fine against FanDuel for taking a large number of unauthorized bets on LPGA tournaments between March 2023 and June 2024.

The most serious infraction, accounting for $30,000 of the total fine, involved FanDuel's failure to maintain its responsible gaming tools. Chair Daryl Olsen emphasised that FanDuel, as a significant player in the industry, should be held to the same regulatory standards as land-based casinos. Commissioners expressed concern over the rapid succession of violations by FanDuel.

Despite these violations, no users suffered financial harm, according to Roth. He confirmed that all affected customers were refunded and that the company returned revenue earned from the prohibited bets.

In an effort to rectify these issues, Roth outlined corrective actions, including improved employee training, more robust operational procedures, and greater automation to reduce human error. A market was removed before bets were placed by FanDuel, and a $330 unauthorized bet was made by the company.

In other news, FanDuel wagered $89,000 on golf and $62,000 on Olympic events. The company has not faced any recent regulatory fines or violations in Iowa and Massachusetts, according to the latest search results. However, it is worth noting that FanDuel has encountered regulatory scrutiny in various states in the past over compliance with gambling regulations.

For the most up-to-date details, it is recommended to check official state gaming commission announcements or reputable news sources covering regulatory actions related to FanDuel.

FanDuel, a major player in the sports betting industry, was fined $10,000 in Massachusetts for accepting prohibited bets on Boston College's NCAA performance before the team had qualified, and an additional $15,000 for taking a large number of unauthorized bets on LPGA tournaments between March 2023 and June 2024. Sports betting is the activity in question, as these fines were issued for violations of sports betting rules.

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