The Connecticut Department of Consumer Protection’s Gaming Division (DCP) has fined DraftKings $19,000 for a technical glitch that saw customers play more than 20,000 spins on an online slot game without producing a win.
An investigation was launched by the DCP following complaints by customers who claimed that DraftKings customer support had maintained that the game, Deal or No Deal Banker’s Bonanza, did not have any issues.
However, the DCP’s investigation revealed that during the course of a week in August of 2023, 522 customers played the game placing more than $23,000 in wagers with no prizes issued. The investigation also found that DraftKings has discovered a technical glitch meant that the game was incapable of generating any winning paylines.
The return to player percentage (RTP) was advertised as 95%, but the odds on the game had been set to zero.
Once the glitch was discovered, DraftKings refunded the full $23,909 in wagers to all affected customers. However, The company failed to notify the customers of the reason for the refund. It also failed to report the issue to the DCP until August 31st which was three days after the glitch was first discovered.
As a result of the investigation, DraftKings was fined $19,000 while the game’s developer White Hat Gaming was fined $3,500.
Reports in local press reveal that the company failed to take the complaints of customers seriously. In one instance, a VIP customer who flagged the issue with a video of the game being played 50 times without a win was locked out of their account and referred to gambling addiction services.
DCP records provided to local press show that the issue had been flagged for internal investigations with White Hat Gaming three days prior to the complaints.
Speaking to local press, said Kaitlyn Krasselt, a spokesperson for DCP said:
“This is a great example of something that, if we were not there to intervene, they would not have taken it seriously until our investigators got involved.”
DraftKings iGaming Revenues on the Rise
DraftKings online casino platform is available in five states: Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia. The company has been growing its overall US online casinos market share steadily since its acquisition of Golden Nugget Online Gaming (GNOG) in 2022.
In August, the company reported Q2 2024 revenues of $1.1 billion, up by 26% year-on-year. It also revealed that its Monthly Unique Payers (“MUPs”) increased by 50% to 3.1 million.
The company currently holds a 32% market share in the online sports betting + online casino gaming industry just behind FanDuel which holds a 35%.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.
DraftKings, a popular online gaming platform, recently received a fine for an online slot game that was found to be unable to produce wins. The game in question, which was called “Lucky Spins,” was marketed as a fun and exciting way for players to win big prizes. However, after numerous complaints from users who were unable to win any money while playing the game, regulators began to investigate.
The investigation revealed that the slot game had a glitch in its programming that prevented players from winning any money, regardless of how much they wagered or how many times they played. This glitch was not disclosed to players, leading many to believe that they were simply having a streak of bad luck when in reality, the game was rigged against them.
As a result of this discovery, DraftKings was fined a significant amount of money by the regulatory authorities. In addition to the financial penalty, the company was also required to refund all players who had lost money while playing the faulty slot game.
This incident serves as a reminder of the importance of transparency and fairness in online gaming. Players should be able to trust that the games they are playing are not rigged against them and that they have a fair chance of winning. Companies like DraftKings must ensure that their games are properly tested and regulated to prevent situations like this from happening in the future.
In response to the fine, DraftKings issued a statement apologizing to their customers and promising to take steps to prevent similar incidents from occurring in the future. They also stated that they would be implementing new measures to ensure the fairness and integrity of all their games moving forward.
Overall, this incident highlights the need for strict regulation and oversight in the online gaming industry to protect consumers and ensure a level playing field for all players. Players should always be cautious when playing online games and report any suspicious activity or unfair practices to the appropriate authorities.
