FanDuel Fined $125,000 for Betting Violations in Iowa
FanDuel has received a $125,000 penalty from the Iowa Racing and Gaming Commission for multiple compliance failures involving betting markets and responsible gaming measures.
LISTEN TO THIS ARTICLE:First, the operator was fined for allowing unauthorized bets on Olympic events, soccer matches, golf tournaments, and the Super Bowl. While the improper golf bets amounted to $89,000, the total wagers on Olympic games events reached $62,000 and a smaller amount of $330 for another violation.
Part of the $125,000 fine was a $30,000 levy specifically imposed on FanDuel Sportsbook for inadequate responsible gaming (RG) protections. The operator was criticized for not offering customers effective "working options" for managing their gaming habits.
On June 11, FanDuel spokesman Ben Roth appeared before the commission to represent the company and address the violations. She stated that FanDuel accepts responsibility for the issues outlined in the settlement and recognizes that it fell short of the company's own high standards.
Roth added that FanDuel had already taken internal steps to rectify the situation, including enhanced training, checklists, and automated reviews. The company had also issued refunds to customers who placed losing bets and returned revenue earned from the illegal wagers.
However, Commissioners questioned the delay in addressing the violations, given that most happened within a year.
Five counts within a very short period of time is just too much, you know, and so I know they're dealing with a big volume. I believe FanDuel is our number two operator in the state. But we just expect more.
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Massachusetts Fine
In related news, FanDuel is also facing a fine for similar violations in Massachusetts. On Tuesday, the Massachusetts Investigations and Enforcement Bureau (IEB) handed the operator a $15,000 civil administrative penalty for accepting thousands of improper bets on the LPGA from March 2023 to June 2024, totaling $78,254.56 in wagers.
FanDuel reportedly believed that the LPGA was part of the approved International Federation of PGA Tours, which had been permitted for betting in the state since 2023. However, betting on the sport wasn't sanctioned until June 6, 2024.
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