The Massachusetts Gaming Commission (MGC) fined DraftKings $450,000 after the operator took credit card-backed wagers on sporting events despite Massachusetts rules.
DraftKings accepted over 1,100 unlawful transactions from 218 customers between February 2023 and February 2024, and facilitated more than $83,000 in illegal bets.
Key takeaways
- DraftKings was fined $450,000 because of several infractions of Massachusetts regulations prohibiting credit card use in sports betting.
- These infractions comprised more than 1,100 bets worth over $83,000 and continued for nearly a year.
- The MGC identified systemic failures in DraftKings' compliance and communications processes.
The MGC cited continued violations of laws that collectively prohibit employing credit cards to place wagers on sporting events. The offenses occurred within three distinct timeframes, indicating systemic trends more than singular incidents.
DraftKings voluntarily reported the violations, but the MGC stressed faulty internal communications and repeated software failures were consequences of long-term noncompliance. While the MGC warned DraftKings in January 2023 before launching its Massachusetts sportsbook, the sportsbook didn't circulate the directive internally.
Improper perception by a product manager and misguided communications resulted in persistent software defects. Even though the company assured authorities that it installed a patch to remedy the issue during May 2023, the issue reappeared in February 2024.
DK leads customer satisfaction among gambling apps
Despite regulatory challenges, DraftKings still topped a new American Customer Satisfaction Index (ACSI) category for online casinos and sportsbooks. During the ACSI's first year accommodating casinos and internet books on the list, DK led with a 78 out of 100.
The survey relied on data from 25,000 U.S. users between November 2024 and June 2025. Internet gamers' overall satisfaction rating was 76, higher than food ordering and social media, but lower compared to restaurant and video streaming categories.
Customer satisfaction depended heavily on app excellence, which was 80 points. User interface, reliability, and confidentiality were 79, and payment processes and game notifications lagged by just 77.
DraftKings led competitors, such as BetMGM (77) and FanDuel (76), reflecting the growing realization among consumers that mobile interface and design are important to their judgments of gambling brands.
Massachusetts targets unlicensed sweepstakes operators
In addition to fining DraftKings, the Massachusetts Attorney General's Office issued cease and desist orders to operators Sportsbetting.ag and BetOnline.ag in June, claiming they were operating illegally by providing gambling services to Massachusetts citizens without sufficient MGC licensing.
The two offshore platforms, as authorities reported, were providing access to an array of internet gambling products, ranging from slot games to poker, blackjack, roulette, and baccarat. On top of that, they offered betting prospects on major American sports leagues and horse racing, all without securing the licenses required as state statutes mandated.
