In a significant turn of events, PointsBet, a prominent online sports betting company, finds itself in hot water. The betting platform faces fines totaling $25,000 for many violations of New Jersey’s sports betting regulations, reports NJ.bet.
This fine was imposed on August 23, but the New Jersey Attorney General’s Office only made the details public on Tuesday. This is almost two weeks after The Associated Press had initially requested the information.
The Pre-Match Betting Fiasco
One of the central violations that contributed to the hefty fine involved PointsBet accepting what is known as “pre-match” bets. This was done in August 2021 on games that had already begun. Astoundingly, all five of these bets emanated from a single customer who boldly wagered $13,500 and received $28,275 in returns. This seemed like an incredible win for the bettor, but their luck was short-lived.
When they found this serious mistake, the gaming enforcement division quickly canceled these bets. It returned the customer’s initial bets. PointsBet made a mistake by not setting up a system to check if their gambling markets were correct and timely.
PointsBet defended their actions by saying they couldn’t manually check every match and betting market. PointsBet argued in a document that overseeing the many events was difficult.
The St. Peter’s Betting Blunder
Another transgression contributing to PointsBet’s hefty fine occurred on March 25, 2022. Then, the company accepted bets related to the St. Peter’s men’s basketball team. St. Peter’s, an underdog team, was on a legendary “Cinderella” run through the NCAA tournament. They captured the hearts of basketball enthusiasts. Yet, there was a catch – St. Peter’s was ineligible to be bet on in New Jersey.
The market for St. Peter’s bets remained live for 55 minutes when two individuals placed bets amounting to $60. Unfortunately for these bettors, the bets got canceled. PointsBet swiftly took responsibility for this misstep, attributing it to human error.
After this incident, the gaming enforcement division emphasized the importance of following the betting rules. St. Peter’s inspiring underdog story made people want to bet, but it disappointed those who wanted to profit.
The Age-Related Esports Betting Oversight
On October 29, 2021, PointsBet was in another predicament. The company offered bets on a “League Of Legends” esports competition.
This competition featured a player on one of the teams who was 17 years old, falling below the legal minimum age of 18 required for betting.
PointsBet accepted four bets amounting to $1,225 before deciding to void them due to the player’s age discrepancy. After the incident, PointsBet admitted they didn’t check ages before allowing gambling on the video game event.
Yet, they reassured regulators and the public that they have since implemented a robust process. Its goal is to prevent such oversights from occurring in the future. This incident underscores the importance of age verification measures. Especially in esports and other competitive events where participants’ ages vary widely.
The Significance of Regulatory Oversight
The fines imposed on PointsBet are a stark reminder of the stringent regulatory oversight in the sports betting industry. It highlights the importance of companies adhering to state laws. It’s their job to implement robust internal controls to prevent such violations.
Regulators ensure that companies operating in the sports betting sector maintain the highest standards of compliance and integrity. They should protect users and maintain the fairness of the sports betting markets.
PointsBet’s case underscores the potential consequences of lapses in compliance. It shows the critical need for continuous vigilance and improvement in the evolving landscape of online sports gambling.
The industry continues to grow. This means companies and regulators must remain committed to maintaining the highest transparency, accountability, and legality standards. That’s the only way to ensure a fair and safe betting environment.
