New Jersey gaming regulators have fined a sports betting company that has not been in operation in the United States since 2024.
The New Jersey Division of Gaming Enforcement (NJDGE) charged Tipico $25,000 for violating self-exclusion rules and allowing a customer to cash out for inflated odds.
Key Takeaways
- Tipico sold its American assets to MGM in 2024
- One customer was offered an immediate parlay cash out above what they risked
- A third-party marketing service sent promotional emails to 162 self-excluded gamblers
The NJDGE claimed that from August 2021 through May 2022, Tipico sent 973 promotional emails to 162 self-excluded New Jersey gamblers.
The self-excluded list is a responsible gambling tool in which individuals voluntarily ban themselves from receiving communications and participation opportunities from gambling operators.
Tipico emails were sent in error to those individuals by a third-party marketing provider who handled email communications. Tipico’s marketing team was responsible for ensuring that self-excluded gamblers were filtered out of the list of recipients.
“Tipico claimed that until the resignation of its former Head of U.S. Compliance in March 2022 these errors had been overlooked,” NJDGE Interim Director Mary Jo Flaherty wrote. “Tipico later reported that to prevent this error from reoccurring, it had created an internal report that would flag and identify self-excluded patrons prior to any promotional emails being sent.”
Parlay panic?
Additional incidents involving Tipico occurred on Jan. 13 and 15, 2024. The company allowed one of its players to cash out of several parlays with inflated odds it claimed was caused by an internal error.
One customer wagered a total of $28,029.26 on 41 parlays with a total possible cash out of $39,593.26. It then suspended withdrawal requests for all 41 parlays, stating that its odds provider incorrectly labeled the fair odds.
Tipico asked the NJDGE for advice on how to navigate the situation, though the customer soon filed a complaint. That complaint has since been settled.
Tipico and its odds partner remedied the issue by limiting cash-out offers to not exceed the original value of the wager before later changes were made to the odds. However, the incident still counted as a violation of the state’s gaming laws.
Tipico out of the American market
Tipico sold its operations to MGM Resorts International on June 24, 2024, after it failed to take hold in a fiercely competitive American sports betting marketplace.
NJDGE offered no further action against Tipico aside from the $25,000 fine. However, should the company be held liable for additional infractions it will receive additional punishments.
Tipico Group still has offices in six different European countries and maintains a gaming presence outside the U.S.
