Fanatics Fined $55K in NJ for Sportsbook Violations, Also Outstanding PointsBet Violations

• The New Jersey Division of Gaming Enforcement has fined Fanatics $55,000 for multiple sports betting compliance violations
• Several of the compliance violations were outstanding PointsBet violations
• Fanatics requested to resolve the outstanding PointsBet violations together with its own violations

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Fanatics Sportsbook is literally paying for the sins of a previously licensed sportsbook operator in New Jersey.

The New Jersey Division of Gaming Enforcement (DGE) levied a $55,000 fine against FBG Enterprises Opco (Fanatics) for failures to comply with the New Jersey Sports Wagering Act and state sports betting regulations. These also included several outstanding violations from previous sportsbook operator PointsBet.

Fanatics acquired PointsBet’s U.S. assets, which included a New Jersey sports betting license, in June 2023.

Fanatics Paying for PointsBet Mistakes

In a DGE notice sent to Fanatics Sportsbook in late August, which was acquired by Sports Betting Dime through an open public records act request, the division notified Fanatics it had accepted 21 wagers on May 16, 2024, on Norwegian Soccer matches after the outcomes of the events were already known. The sportsbook accepted 21 bets for a total stake of $1,954.36 on Norwegian First Division soccer matches, Raufoss IL vs. Moss Fotballklubb and Idrettsklubben Start vs. Egersunds Idrettsklubb.

The potential payout for these outcomes was $85,454.13. In accordance with DGE guidance regarding past posted markets, the bets were voided and the stakes were returned to patrons.

Additionally, the state notified Fanatics that PointsBet had several outstanding violations dating back several years, which included accepting bets on events where the outcome was already known, accepting bets on a prohibited NCAA football bowl game, accepts bets on an NCAA game with a display error, and finally accepting bets on an NCAA event that included a New Jersey university.

Fanatics requested to resolve the outcomes of the PointsBet violations together with its own violations.

“These failures are not only problematic and unacceptable, but they are also violative and contrary to the policies of the State of New Jersey and the Sports Wagering Act, N.J.S.A. 5:12A-10 et seq. and, therefore, are impermissible,” Interim DGE Director Mary Jo Flaherty wrote in the violation notice to Fanatics.

A Fanatics Sportsbook representative declined to provide a comment on the fine.

PointsBet Had Numerous Outstanding Violations

The outstanding PointsBet violations were numerous and dated as far back as December 2020, according to the DGE.

The first involved PointsBet posting sports betting markets on an NCAA basketball game, Gonzaga University vs. Northwestern State University, with a display error on its website. PointsBet published a market for the game as “halftime/fulltime,” which required patrons to bet on which team would be winning at halftime. However, the sportsbook failed to include Gonzaga as an option for winning at halftime or for winning at the conclusion of the game.

This display caused users to believe that an “any other result” option included the possibility of Gonzaga winning at halftime or at the end of the game. The error misled users and resulted in the book accepted 17 bets on the market, with a total handle of $1,725 and a potential win of $48,165. PointsBet discovered the error 30 minutes before game time and voided the bets, refunding all wagers to users.

The DGE also reported PointsBet accepted bets on an NCAA football game between Purdue University vs. LSU on Jan. 2, 2023, the Citrus Bowl. The DGE informed all sports betting operators in the state to not accept bets on the event due to a Purdue University athlete being in violation of a state sports betting law. PointsBet admitted to receiving the the notice, but still accepted eight bets on the bowl game.

The DGE then reported PointsBet accepted bets on March 27, 2024, on a prohibited NCAA basketball game between the University of Nevada-Las Vegas vs. Seton Hall University. This was in violation of several New Jersey sports betting laws, as they prohibit betting markets that include state universities.

Finally, the DGE notified PointsBet that it accepted bets on several events where the outcomes were already known. These include:

• Five bets on MMA event Matej Penaz vs. Sedrique Dumason, on Aug. 30, 2023, with a total stake value of $2,715.00 and a potential win of $6,234.50
• Three bets on J-League Soccer matches for a total stake value of $1,550 on May 28, 2023
• Ten total bets on FIBA match Germany vs. Montenegro and four tennis matches on Feb. 22, 2024, for a total stake value of $3,975.78 and a potential win of $10,307.94

The DGE accepted the offer of Fanatics to pay a $55,000 civil monetary penalty for its own violations and for PointsBet’s violations.