New Jersey Fines BetMGM, bet365, and FanDuel Thousands For Various Violations

• New Jersey Division of Gaming Enforcement has issued civil penalties to BetMGM, bet365 for various non-compliance matters
• BetMGM fined $72,000 for violating regulations regarding wagering on prohibited and unapproved sports events
• bet365 fined $33,000 regarding violations of self-exclusion regulations

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The New Jersey Division of Gaming Enforcement issued civil penalties to BetMGM, bet365, and FanDuel for various non-compliance matters in the state, doling out total fines of more than $100,000 to the operators.

The New Jersey regulatory body fined BetMGM $72,000, and ordered a disgorgement of thousands of dollars for alleged violation of regulations regarding wagering on prohibited and unapproved sports events, and fined bet365 $33,000 for alleged violations regarding self-exclusion regulations.

FanDuel has also been fined $5,000 for alleged failure to adhere to a DGE directive.

BetMGM Allegedly Accepts Bets on Prohibited Event

According to the New Jersey Division of Gaming Enforcement’s (DGE) order, BetMGM violated the New Jersey Sports Wagering Act by accepting sports bets on prohibited or unapproved sport events in the state. BetMGM specifically violated N.J.S.A. 5:12A-10, and DGE regulations N.J.A.C. 13:69N-1.1, N.J.A.C. 13:69N-1.9(k), and N.J.A.C. 13:69N-1.11(a).

Sports Betting Dime has submitted an open public records act for more details on the violations. However, the regulations cited in the order make it clear that BetMGM accepted sports bets in New Jersey on prohibited and unapproved sports events.

The prohibited events in the cited regulations deal with sports bets being accepted on New Jersey college teams or on collegiate sporting events being hosted in New Jersey. State sports betting regulations prohibit operators from offering markets on New Jersey college teams or on college events being held in the state, such as the NCAA March Madness tournament.

The DGE imposed a $72,000 civil penalty on BetMGM and ordered the disgorgement of $8,204.49.

BetMGM did not respond to an inquiry asking for comment on the civil penalty.

bet365 Fined For Self-Exclusion Violations

The DGE issued a $33,000 fine to bet365 for violations of self-exclusion regulations in the state. According to the order, bet365 violated regulations N.J.A.C. 13:69G2.3 and N.J.A.C. 13:69G-2.4. While details of the violations were not provided in the order, the cited regulations deal with responsibilities of self-exclusion by licensed sports betting operators.

The violated regulations require all licensed operators to maintain an accurate self-exclusion list and establish procedures to block self-excluded individuals from gaming or receiving marketing materials.

According to the DGE, bet365 accepted the penalty and will pay the $33,000 fine.

An inquiry sent to bet365 for a comment on the fine was not returned.

FanDuel Fined for Failure to Comply With Directive

The DGE issued a $5,000 to FanDuel for failing to adhere to a division directive. The order noted FanDuel did not comply with N.J.S.A. 5:12-80(d) during an investigation of suspicious betting activity. The regulation requires the following:

All applicants, licensees, registrants, and any other person who shall be qualified pursuant to this act shall have the continuing duty to provide any assistance or information required by the division, and to cooperate in any inquiry, investigation or hearing conducted by the division and any hearing conducted by the commission. If, upon issuance of a formal request to answer or produce information, evidence or testimony, any applicant, licensee, registrant, or any other person who shall be qualified pursuant to this act refuses to comply, the application, license, registration or qualification of such person may be denied or revoked.

The DGE noted the violation occurred during an investigation of suspicious betting activity.

FanDuel told Sports Betting Dime the fine stemmed from returning funds to a customer before the DGE completed its investigation.