MGC Stands By Decision
While $10,000 is a drop in the bucket for FanDuel, it turned some heads among industry experts. Some are pointing out that the amount is disproportional to the $11 wagered, especially considering FanDuel brought the issue to the attention of the MGC.
While some MGC Commissioners have acknowledged those concerns, they are not backing down from the decision.
“I take no issue for what you’ve recommended. “Commissioner Nakisha Skinner said of the decision. “I want to note that even though the commission has set a high priority for statutory violations, I’d want to recognize that this was an incident that involved three wagers for a total of $11. I want to make sure that when we go forward, any recommendation that comes from the IEB we consider the severity of the circumstances. We want to consider the degree of violation, if that makes sense, as we’re making sure the penalty is proportionate to the actual circumstances of the non-compliance issue.”
DraftKings Also Facing Potential Fine
Massachusetts-based operator DraftKings has also been targeted by the MGC. The regulator is accusing the sportsbook giant of allowing players to wager using funds deposited from a credit card, which is illegal in the Bay State.
DraftKings is arguing that those deposits were made out of state, meaning the state’s sports betting law wasn’t violated. While it seems the operator has a strong case, history suggests it won’t stop some kind of fine from the MGC.
Will MGC Hurt Sports Betting Market?
The state regulator has gained a reputation for aggressively enforcing the state’s rules and regulations. They pushed Barstool out of the industry and continually assessed fines to other operators for even the most minor infractions.
Self-reporting issues haven’t helped sportsbooks avoid the regulators' wrath. While the fines aren’t crippling, they can start to add up. Operators may not be willing to remain in the market, especially after the MGC’s fine for FanDuel’s $11 mistake. Those who stay could pass the cost of the fines on to customers through watered-down odds and limited promotions.
