Zen Sports and other operators are required to keep a reserve account to cover all of the obligations or bets that were placed by sports wagerers.
The reserve issues were caught by the SWC in a review of reserve balances on Dec. 1, 11 and 29, 2023. The issue was brought to Zen Sports and the company has maintained an adequate reserve balance since.
“The capital wasn’t an issue but it was a calculation error,” Zen Sports Chief Commercial Officer Eddie Ponce told the SWC.
Zen Sports' reserve account was "several thousand dollars" below the reserve requirement, Maxwell said.