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PointsBet Fined $25,000 for Multiple Violations of New Jersey Sports Betting Laws

Published on September 21, 2023
Updated on September 22, 2023
Written by Simon

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PointsBet Fined $25,000 for Multiple Violations of New Jersey Sports Betting Laws
  • They had three violations from August 2021 – March 2022
  • One includes betting on an in-states team which is not allowed
  • PointsBet was recently bought by Fanatics

The New Jersey Division of Gaming Enforcement has fined sports betting company PointsBet $25,000 for three different violations, including accepting “pre-match” bets on games that had already started and offering bets involving an underage esports player.

PointsBet Fined For Violating New Jersey Sports Laws

Online sports betting firm PointsBet has been slapped with a $25,000 fine for three separate violations of New Jersey’s sports betting regulations. The New Jersey Division of Gaming Enforcement announced the fine, which was originally imposed on August 23, nearly two weeks after a request for details by The Associated Press.

The first offense occurred in August 2021, when PointsBet accepted what are termed as “pre-match” bets on games that had already commenced. One customer was notably impacted, wagering $13,500 and receiving $28,275 before the bets were voided and the initial amount returned. The company admitted to regulators that it lacked an automated process for ensuring the accuracy and timeliness of its published betting markets.

In March 2022, PointsBet accepted wagers on the Saint Peter’s men’s basketball team, which was ineligible for betting in New Jersey. The market remained live for 55 minutes and attracted two bets totaling $60, which were subsequently canceled. The company blamed this violation on human error.

The third violation involved offering bets on a League of Legends esports competition in October 2021 that included a player under the age of 18. Four bets amounting to $1,225 were made and later voided. PointsBet conceded that it had failed to verify the ages of esports competitors before listing the event but noted that a verification process has since been established.

According to the enforcement division, PointsBet attributed the first issue to a communication problem with a third-party data feed provider. The company stated that given the “overwhelming” number of matches it offers, it was “unrealistic” to check and verify each event. PointsBet declined to make any further comments on the matter.

The fine serves as a warning for online betting companies operating in New Jersey, emphasizing the importance of adhering to state regulations.

Betting Implications

PointsBet was only fined, and fortunately, their license to operate in New Jersey was not suspended, especially given that Atlantic City is a popular gambling destination. Including New Jersey, PointsBet currently operates in 14 states, making it the seventh-largest licensed sportsbook in the United States. The Australian-based company was recently in the news as they were purchased by Fanatics. This sale aims to help expand the brand as it seeks to compete with other major brands like BetMGM and DraftKings.

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Simon Flynn is a sports bettor with over 10 years experience in building profitable sports trading systems. Specializing in football (the type where players use their feet), he dreams of hitting that elusive 10-game accumulator one day. Editorial Promise