PointsBet, the online sports betting platform, found itself in hot water as New Jersey gambling regulators identified three distinct violations of the state’s sports betting laws. The company was subsequently slapped with a $25,000 fine.
The fine and violations
Although the penalty was officially imposed on August 23rd, it wasn’t until nearly two weeks later, following a request from The Associated Press, that the New Jersey Attorney General’s Office disclosed the details of the case.
As outlined on the website of the state’s Division of Gaming Enforcement, an agreement was reached wherein PointsBet, headquartered in Denver, agreed to settle the matter by paying the $25,000 fine.
One of the infractions involved PointsBet accepting what are known as “pre-match” bets in August 2021 for games that were already in progress. Interestingly, all five of these bets originated from a single customer, who staked $13,500 and received $28,275 in winnings.
Upon discovering this error, the bets were promptly voided, and the initial bet amount was duly returned to the customer, a resolution facilitated by the gaming enforcement division.
The company told regulators “that it did not have an automated process in place to review the accuracy and timeliness of published markets,” according to the division.
“PointsBet stated that the ‘overwhelming’ number of matches offered through PointsBet made it ‘unrealistic’ to check and verify each event and the market offered for wagering,” the division wrote in a document outlining the charges against the company.
The division added that PointsBet attributed the problem to “an unresolved communication issue” between itself and a third party data feed provider.
Admitting the mistakes
PointsBet, the online sports betting platform, found itself in a bit of a pickle due to two distinct betting mishaps.
Firstly, on March 25, 2022, they allowed bets on the St. Peter’s men’s basketball team, despite this underdog team’s legendary “Cinderella” run through the NCAA tournament making them ineligible for betting in New Jersey. Remarkably, the St. Peter’s betting market was open for just 55 minutes, and only two bets, totalling $60, were placed before being promptly cancelled.
PointsBet attributed this oversight to human error, as conveyed by the gaming enforcement division.
In another incident on October 29, 2021, PointsBet offered bets on a “League Of Legends” Esports competition. However, one of the players involved was only 17 years old, falling below the legal minimum age of 18 for betting. Four bets, amounting to $1,225, were initially accepted but were later voided.
The company admitted to regulators that they had neglected to verify the ages of the competitors before including the video game event on their betting platform. Since then, they have implemented a robust process to ensure such oversight doesn’t recur.
Get ready for the next summit!
SiGMA Curaçao is just around the corner, with only a week left until it kicks off. Make a note on your calendar for September 25th to 28th, as this thrilling event is proudly presented by the Ministry of Finance in partnership with SiGMA Curaçao.
Don’t let this incredible opportunity slip through your fingers. SiGMA Curaçao offers a chance to be a part of something truly extraordinary. During this event, you’ll have the opportunity to gain invaluable insights into the latest developments in gambling regulations, immerse yourself in the vibrant world of iGaming, and establish connections with key figures in Curacao’s thriving industry.