DraftKings Fined by NJ Over Coding Error & Misreported Figures
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00:00Yeah, so this is kind of an interesting case.
00:06DraftKings, you know, came out, they responded to the letter from the New Jersey regulators
00:11and said it was a coding issue that kind of accounted for parlay bets from other bets
00:17and so it skewed the numbers a little bit.
00:20Under their argument, they said, you know, it doesn't really affect the overall revenue,
00:25it shouldn't affect the state level taxes, all that stuff.
00:28The regulators came back and said, well, no, it did affect our reporting.
00:32We put out bad numbers for the first time in at least 13 years.
00:36We had to issue a correction and, you know, DraftKings now says they fixed the coding
00:42from the new kind of program they were using at that point and, yeah, I mean, basically
00:47comes down, it seems like New Jersey regulators are just really upset they had to, you know,
00:53issue a correction on some misreported numbers.
00:56It is a huge fine for New Jersey.
00:59I think they also issued a fine from 2022 yesterday for about $2,000 to FanDuel for
01:04a violation.
01:05So, you know, that shows kind of the discrepancy in how serious they're taking this issue.
01:11And the chief regulator had some really strong words, you know, I urge people to go read
01:16that story at LSR and kind of read her quotes because it kind of takes DraftKings to task
01:22even though they've tried to come back and fix everything as best they can and, you know,
01:27correct their wrongs.
01:28But, yeah, it's a pretty significant fine from New Jersey on DraftKings and it shows
01:33how serious the DraftKings regulators or the New Jersey regulators are taking this issue.