FanDuel fined for accepting bets on pre-recorded MMA matches in New Jersey

New Jersey gambling regulators have fined FanDuel $2,000 for accepting bets on mixed martial arts fights that had already occurred. The fights, promoted as live events scheduled for April 1, 2022, had taken place a week earlier. The mistake led to FanDuel paying out over $230,000 to settle the bets.

FanDuel took 34 wagers, totaling $190,904, on the Professional Fighters League matches, which had taken place on March 25, the Associated Press reported. The state Division of Gaming Enforcement revealed the incident in a letter made public this week, stating that FanDuel was not informed by its data-feed providers that the events were pre-recorded. Instead, FanDuel’s trading team created betting markets based on information directly from the Professional Fighters League.

After the bets were placed, the International Betting Integrity Association alerted FanDuel that the events had already happened. FanDuel paid out $231,094 to settle the wagers and agreed to update its internal controls to prevent similar incidents in the future.

This was not an isolated incident. In 2021, New Jersey regulators fined Kambi Group and Rush Street Interactive $1,000 each for accepting bets on a British soccer game that had already occurred. The error allowed 86 bets on a proposition bet involving Manchester United’s Marcus Rashford after the game had ended.

Additionally, last week, New Jersey regulators fined DraftKings $100,000 for reporting inaccurate sports betting data to the state.