Rush Street Interactive and its technology partner, Kambi, were each fined $1,000 recently by the New Jersey Division of Gaming Enforcement for failure to abide by state rules on gambling.
The trouble occurred when RSI’s playsugarhouse.com betting app offered soccer odds on May 14 (coincidentally, the third anniversary of the U.S. Supreme Court’s landmark ruling that opened the door for such bets outside of Nevada) on whether Manchester United forward Marcus Rashford would score a goal against Liverpool.
Two issues arose — the game actually was played on May 13, and Rashford indeed scored a goal in the 68th minute of a 4-2 loss.
So 86 customers, who hardly could be considered “gamblers” in this case, elected to bet on Rashford to score a goal he already had scored.
The bettors “risked” a total of $15,000 on the sure thing that quickly became not a thing at all.
The money was not paid out. DGE officials ultimately fined RSI and Kambi for “accepting wagers on pre-game Sports Market after the sporting event had been concluded, the failure to suspend the market, and the voiding of the accepted wagers without the Division’s approval.”
How did this happen?
According to a DGE review, Kambi notified RSI of the error almost immediately. On May 26, DGE was notified by Kambi that “the ‘pre-game market was created manually because it was a special offering specific to a particular soccer game.”
As a result of the blunder, Kambi’s compliance team “has implemented mandatory additional Quality Assurance training for the Trading Team” and secondary approval is now needed from supervisors before manual entries are made to the data feed.
“We and our partners take compliance seriously, and after the partner informed us that one of their millions of betting markets was left open after the European soccer game concluded, RSI self-reported to the NJDGE and agreed to pay the $1,000 penalty,” spokesperson Lisa Johnson told The Associated Press.
DGE also penalized others
State regulators also imposed penalties on a number of other operators last month.
Borgata had to forfeit $1,399.14 in winnings gained from 20 underage gamblers — and another $7,749.51 that the casino won from 117 more gamblers “who failed to produce adequate identification, abandoned certain assets, or were otherwise prohibited from engaging in gambling activity.”
FanDuel, meanwhile, was docked $2,000 for “offering an event approved as a casino game without a casino license or Division authorization in violation of a Division requirement.” It was assessed another $2,000 as a civil penalty for a breakdown in protocols that allowed a self-excluded patron to wager and to receive gambling promotional materials. The company also was made to forfeit $1,000 in winnings from the patron.
888 Atlantic Ltd. was docked $8,000 for its own violation in enabling a self-excluded patron to place wagers.
Finally, BetMGM was fined $500 for “failure to ensure that Evolution Live Dealer was working as intended, in violation of a Division requirement… specifically, that the tip functionality failed to work as intended.”