DraftKings fined for allowing proxy betting

[The Buzz]

The New Jersey Division of Gaming Enforcement has fined DrafKings $150,000 for breaching the state’s gambling regulations relating to proxy betting that took place on multiple occasions throughout 2019 and 2020.

According to the report, the investigation centered on one gambler from Florida who claimed that he had a verbal agreement with DraftKings sportsbook director Johnny Avello that would allow him to place bets in New Jersey via proxy. The report also details how DraftKings created a process that allowed gamblers to circumvent proxy betting restrictions after first discovering the violations.

From Legal Sports Report:

Under New Jersey sports betting law, sportsbooks must reject bets from anyone “who is an agent or proxy for any other person.”

DraftKings was first implicated in the proxy betting dispute in November 2020. A Florida customer named Eric Stevens claimed he had a verbal agreement with DraftKings sportsbook director Johnny Avello that allowed him to bet with DraftKings in New Jersey via proxy.

DraftKings said at the time there was no verbal agreement in place.

“We never authorized the customer in question to engage in proxy betting,” the DraftKings spokesperson said. “Any claim by this customer that he received a verbal agreement from Johnny Avello to place out of state wagers on his New Jersey mobile account through a proxy is patently false.”

However, the AG report, shared with LSR, concluded the operator knowingly broke proxy rules.

Per the report, Avello brought Stevens as a high-staking customer to DraftKings from his previous role at Wynn.

In 2019, Stevens had knee surgery, meaning he was unable to travel from Florida. However, he sent a proxy to New Jersey to bet with his account, wagering up to $50,000 on individual games.

DraftKings initially identified the proxy because a geolocation check noted the login from Florida, followed by bet placement minutes later in NJ.

Read more here: https://www.legalsportsreport.com/65...da-super-bowl/

[universal4]

Investigation of ONE gambler, certainly gives the appearance this probably happened in many more states with many more gamblers/players.

I wonder if this also put any extra scrutiny of DraftKings in Florida as they are currently one of the bigger lobby groups trying to get a number of bills passed.

Rick
Universal4