FanDuel hit with substantial fines due to errors in LPGA betting
In a series of regulatory missteps, FanDuel, a leading online sports betting platform, has been hit with fines totalling $140,000 from the Iowa Racing and Gaming Commission and the Massachusetts Gaming Commission.
The Iowa Racing and Gaming Commission imposed a $125,000 fine on FanDuel for five separate violations of sports betting regulations. These infractions, which occurred across golf, Olympic, and Super Bowl betting markets, involved failures to adhere to state rules and maintenance issues with certain betting options. As a result, FanDuel accepted over $89,000 in unauthorized golf bets and $62,000 on Olympic events.
Meanwhile, the Massachusetts Gaming Commission fined FanDuel $15,000 for accepting thousands of improper bets on the Ladies Professional Golf Association (LPGA). FanDuel mistakenly believed that the LPGA was included under the International Federation of PGA Tours, which had been approved for betting in 2023. However, the LPGA markets did not receive formal approval until June 6, 2024.
Company spokesperson Ben Roth acknowledged the mistakes and stated that FanDuel takes full responsibility for the infractions. In response, FanDuel has tightened its internal procedures, introducing updated checklists, new training protocols, and automated compliance systems.
In Iowa, all affected users received refunds for losing bets and any revenue collected from the illegal markets. In Massachusetts, FanDuel accepted over 7,000 unauthorized bets on LPGA events, totaling more than $78,000 in wagers. Mirax Casino, another online betting platform, did not face a fine in this instance.
Chair Jordan Maynard of the Massachusetts Gaming Commission acknowledged the mistake during a commission meeting and praised FanDuel for their responsiveness and communication throughout the process. Chair Daryl Olsen of the Iowa Racing and Gaming Commission expressed disappointment with the frequency of the infractions, saying, "Five counts within a very short period of time is just too much. We expect more."
BetMGM, another online betting platform, faced a smaller fine of $10,000 for a similar issue, though the scope of their violation was smaller—just under 2,000 bets worth about $1,600.
These fines underscore the importance of compliance with state sports betting laws, as online betting platforms continue to expand and evolve. FanDuel, for its part, has pledged to learn from these incidents and improve its internal controls to prevent future violations.
FanDuel, a prominent online sports betting platform, was fined $15,000 by the Massachusetts Gaming Commission for accepting unauthorized bets on Ladies Professional Golf Association (LPGA) events, which were mistakenly believed to be under the International Federation of PGA Tours. Meanwhile, in the realm of business and finance, FanDuel also faced a $125,000 fine from the Iowa Racing and Gaming Commission for violations in golf, Olympic, and Super Bowl betting markets, involving failures to abide by state rules and issues with certain betting options, leading to over $89,000 in unauthorized golf bets and $62,000 on Olympic events.
