DraftKings faced a Massachusetts Gaming Commission (MGC) hearing for improperly allowing credit card-funded bets in Massachusetts between March 2023 and February 2024.

Key Issues:

• 218 users placed 1,160 sports bets totaling $83,663.92 using credit card funds
• DraftKings misinterpreted regulations, believing credit card restrictions only applied to deposits made within Massachusetts
• Users funded accounts with credit cards in states where legal, then placed bets in Massachusetts

Timeline of Events:

• Initial discovery and self-reporting: May 31, 2023
• First attempted fix failed due to incomplete testing
• Continued until July 13, 2023
• Additional issues found in February 2024 with pool contests

DraftKings' Implemented Solutions:

1. Dedicated tester for responsible gaming controls
2. New responsible gaming control reviews during software development
3. Release criticality checks for all platform updates

Current Status:

• MGC will deliver a ruling that could include fines or other penalties
• DraftKings will submit a closing brief
• Company executives expressed confidence in new compliance measures

The MGC Chair acknowledged DraftKings' self-reporting, emphasizing the importance of operator transparency and good relationships with the commission.

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