Tipico Fined $25K in New Jersey Despite No Longer Operating in U.S.

• The New Jersey Division of Gaming Enforcement has fined Tipico $25,000 for violation of self-exclusion rules
• Tipico sent promotional emails to 162 self-excluded patrons from August 2021 through May 2022
• A customer also won nearly $40,000 from Tipico across 41 parlay bets that featured erroneous odds

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Tipico has not been operational in the U.S. since last year and it is still taking losses.

The New Jersey Division of Gaming Enforcement recently fined Tipico $25,000 for violation of self-exclusion rules and for allowing a patron to cash out wagers at overly inflated odds.

Tipico sold its U.S. operations to MGM Resorts International on June 24, 2024.

Self-Excluded Patrons Still Received Promotions

According to the ruling from the New Jersey Division of Gaming Enforcement (DGE), from August 2021 until May 2022 the operator improperly sent 973 promotional emails to 162 self-excluded patrons in the state. Tipico failed to notice the error until March 2022 and failed to correct and report the error to DGE until May 2022.

Tipico used a third-party provider to send the marketing emails to customers, but its marketing team was responsible for ensuring patrons who self-excluded from receiving promotional materials were filtered out of the third-party’s system.

“In August 2021, when Tipico’s marketing team was configuring the third-party system to send and filter emails, it failed to notice that the filters were not operating properly. Tipico claimed that until the resignation of its former Head of U.S. Compliance in March 2022 these errors had been overlooked. Tipico later reported that to prevent this error from reoccurring, it had created an internal report that would flag and identify self-excluded patrons prior to any promotional emails being sent,” Interim Director Mary Jo Flaherty wrote in the ruling.

Patron Cashed Out on Inflated Odds

Also, on Jan. 13 and 15, 2024, a Tipico patron was able to cash out several sports betting parlays that included erroneous odds, which Tipico claimed were caused by a system error.

One patron placed 41 parlay wagers for a total stake of $28,029.26 for a total payout of $39,593.26. Tipico claimed that its parlay odds provider had set incorrect odds on the event, which caused the erroneous inflation of the cash out values. The company suspended all 41 withdrawal requests from the patron and asked the DGE for guidance as to a void request.

The patron filed a complain with the division, which has since been addressed by the DGE. Typically, in New Jersey if an operator accepts a bet with erroneous odds the DGE does not allow them to void the wager and must pay out the wager at its accepted odds.

To prevent the error from reoccurring, Tipico and its odd provider implemented technological changes to prevent offering cash out values at higher odds than were available during the original wager.

The DGE reported that Tipico was in violation of a number of gaming statutes for this incident and the promotions mailed to self-excluded customers.

Civil Fine, But No Further Action

The DGE accepted the offer of Tipico for a civil monetary penalty of $25,000 and no further regulatory action.

However, should Tipico return to the state and incur any additional violations of the gaming statutes, no matter how minimal, it will result in further disciplinary action by the DGE.