The United States is home to various gambling regulators who continually oversee their respective markets, enforcing compliance among licensed casinos, online gaming, and betting operators with the set regulations. Non-compliance often leads to penalties, typically fines. However, in more serious situations, the gambling authorities could contemplate license withdrawal.
Recently, PointsBet, a sports betting operator, faced a penalty in New Jersey due to regulatory violations. As reported by The Associated Press, the state’s gambling regulator, the Division of Gaming Enforcement (DGE), imposed a fine on the company for breaching the well-defined sports wagering laws.
According to a recent publication, the financial punitive measures against PointsBet were activated towards the end of August. However, details weren’t made public by the New Jersey Attorney General’s Office until this Wednesday. As per the sources, PointsBet arrived at an agreement with the DGE to cover the fine due to three instances of violating the sports betting regulations.
Instances of Violation Took Place in 2021 and 2022
One of these violations traces back to October 29, 2021, involving an e-sports tournament. This is when PointsBet allowed bets on a League of Legends tournament. Although four bets were placed on this e-sports event, one team member was only 17 years old.
This was a breach of regulations as they mandate individuals involved in betting to be a minimum of 18 years of age. While the operator had accepted four bets, amounting to $1,225, PointsBet claimed that these bets were later voided. Upon an inquiry into this violation, it became evident that the sports betting operator did not check whether all the tournament participants were at least 18 years old. Nevertheless, PointsBet has put a procedure in place to prevent such oversights in the future.
Another violation took place in August 2021 when PointsBet allegedly accepted pre-game bets for a game already in progress. A sports bettor placed bets worth $13,500 and ended up winning $28,275. Upon investigation, PointsBet realized its mistake, attributing it to a “communication issue” between their company and a third-party data feed provider. The DGE clarified that the bets related to this incident were voided.
The final violation was accepting wagers on a game ineligible for betting in New Jersey. This case dates back to March 25, 2022, when PointsBet accepted two bets on a game featuring the Saint Peter’s men’s basketball team. These bets totaled $60. However, wagering was not permissible in the state for this particular event. Consequently, both bets were voided, and PointsBet attributed this lapse to human error.
