In an April Fools incident that was no joke for several dozen sports bettors, FanDuel was fined by the New Jersey Division of Gaming Enforcement (NJDGE) for allowing bets on an MMA event that had already happened.
Flutter Entertainment-owned FanDuel admitted taking 34 bets, totaling $190,000, on a Professional Fighters League (PFL) event billed on the app as taking place on April 1, 2022. However, the event had actually already taken place a week earlier.
The incident occurred in 2022, and concluded on January 2, 2024 with a $230,000 settlement to the bettors and a $2,000 fine from the NJDGE. However, it was only revealed to the media by regulators this week.
FanDuel blamed its data providers, who reportedly received official communications in error from the PFL stating the incorrect fight date.
The Event
FanDuel took 28 online wagers on the event, and eight in-person bets. The leading U.S. sportsbook’s in-house trading team uses inside data from the PFL to create odds, and so did not notice the mistake.
It was, however, noticed by the International Betting Integrity Association, which globally monitors sports betting transactions. It told FanDuel that the PFL event had, in fact, already happened when it took the wagers. Then FanDuel self-reported the incident to the NJDGE.
“FanDuel confirmed that its traders failed to confirm with PFL that the event had previously occurred and was being presented via a tape delay,” said Gina DeAnnuntis, New Jersey Deputy Attorney General, in a statement.
In this case, the bettors were paid out. But when it comes to casino gambling, more often than not, gambling payouts involving errors do not end with the gambler getting the money. Ask one woman who thought she had hit for $1.2 million at Bally’s Atlantic City earlier this year, only to have the operator tell her it was in error.
Precedents and Fines
The incident is not without precedent in New Jersey, which is one of the most popular U.S. sports betting markets, with more than a billion dollars wagered every month.
Three years ago, 86 Garden State bettors placed wagers on a British soccer game that concluded the day before, as reported by Associated Press. On May 13, 2021, bettors placed multiple prop bets and futures bets on the English Premier League Game between Manchester United and Liverpool. It was a match that had actually played out May 12.
Rush Street Interactive was fined $86,000 for the incident, and had to settle all bets. It blamed an error from an employee of its European software provider, Kambi.
In more recent news, FanDuel’s main sportsbook rival DraftKings saw an even bigger fine in New Jersey. The state demanded $100,000 from the Boston-based operator after it improperly reported data to the regulator.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
