Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioThe Massachusetts Gaming Commission (MGC) has fined DraftKings $450,000, the largest fine ever imposed in the state, after determining that the operator accepted credit card deposits for nearly a year in violation of state law.
MGC discovered 1,160 unauthorized wagers, funded through 242 credit-card deposits by 218 customers, totaling $83,667.92 in handle. The violations spanned from March 10, 2023, to February 13, 2024.
DraftKings discovered and self-reported three periods within that time, initially attributing the issues to software problems. However, regulators concluded that the recurring failures and internal miscommunications resulted in serious compliance failures.
In addition to the $450,000 fine, DraftKings must provide proof that it has refunded the improperly accepted funds, submit a corrective action plan, and perform an internal audit by an independent third party.
Massachusetts is one of only a handful of states that prohibit the use of credit cards to make deposits at sports betting platforms. Others include Iowa and Tennessee, with Illinois also moving in that direction.
DraftKings Under Fire Elsewhere: A String of Fines and Lawsuits
Connecticut: $3 Million Settlement
Just a few weeks before the Massachusetts fine, DraftKings settled with the Connecticut Department of Consumer Protection and agreed to return $3 million to 7,000 Connecticut consumers.
The settlement resulted from the regulator’s investigation into DraftKings for engaging in misleading marketing practices by offering deposit match bonuses without fully disclosing the associated requirements. The affected consumers participated in the bonus offers between October 2021 and January 2023.
The operator also agreed to pay $50,000 for consumer complaint resolution, protection, and education, plus provide annual training for its marketing staff.
SEC: $200,000 Settlement
In September 2024, DraftKings agreed to pay a $200,000 civil penalty after the US Securities and Exchange Commission (SEC) charged it with selectively disclosing material and nonpublic information to investors.
The charge stemmed from CEO Jason Robins’ social media posts about the company’s growth before the earnings release. While the public relations team quickly removed the posts, the SEC charged DraftKings with violations of Section 13(a) of the Exchange Act and Regulation FD.
New Jersey: Two Fines Totaling $120,000
In 2024, New Jersey gambling regulators fined DraftKings on two occasions. In July, it fined the operator $100,000 for inaccurately reporting sports betting data to the state. The regulator called the conduct unacceptable and a weakness in the company’s business abilities.
In December, DraftKings received a $20,000 fine for offering unauthorized wagers, including those on unapproved basketball leagues. DraftKings attributed the non-compliance to third-party technology failures, but it ultimately voided and refunded the affected bets.
Class-Action Pressure Mounts
DraftKings now faces multiple class‑action suits.
The city of Baltimore filed a consumer protection suit against the operator and rival FanDuel. It accuses the platforms of using data-driven mechanisms to hook and monetize vulnerable and problem gamblers.
Meanwhile, a Pennsylvania case challenges the transparency of DraftKings’ promotions. That includes wording like “risk-free,” “no sweat,” and deposit matches.
Bright Spot in New York: Court Tosses Class‑Action Claim
Despite the multiple fines and legal challenges, DraftKings also achieved a significant victory in New York this month.
A federal court dismissed a class action lawsuit that had similar arguments to the Pennsylvania case. It alleged that DraftKings’ “risk-free” and deposit-match bonuses mislead bettors.
The court sided with the operator, ruling that it had clearly and prominently disclosed the terms, including the requirement to wager $25,000 (a 25x wagering requirement) to receive the advertised $1,000 bonus. The court also ruled that the advertisement would not mislead a reasonable consumer.
The New York ruling could significantly improve DraftKings’ defense in the Pennsylvania case and other similar legal challenges.
