FanDuel is paying the price for multiple compliance violations in Iowa.
The Iowa Racing and Gaming Commission levied a $125,000 fine on FanDuel for five violations pertaining to betting markets and the operator’s responsible gaming tools.
FanDuel received fines for allowing improper wagers on the Super Bowl, golf tournaments, Olympic events and soccer matches. The prohibited golf wagers totaled $89,000.
The illicit bets on Olympic events totaled $62,000, while the smallest violation was $330.
FanDuel was also penalized for a lack of RG protections. Its $125,000 fine included a $30,000 penalty for failing to provide customers with adequate “working options” for RG.
“We take responsibility for the matters represented in the settlement before the commission today and understand that we did not meet the high standard that we hold for ourselves,” said FanDuel spokesman Ben Roth in a statement.
FanDuel responded to the regulator’s fines by enhancing its business practices. The Flutter-owned brand has improved workforce training and created a series of checklists to ensure compliance. FanDuel received backlash despite its efforts to improve operations.
“Five counts within a very short period of time is just too much, you know, and so I know they’re dealing with a big volume,” said Iowa Racing and Gaming Commission Chair Daryle Olsen. “I believe FanDuel is our number two operator in the state. But we just expect more.”
Multiple regulators impose penalties on FanDuel
FanDuel ran into regulatory issues in Iowa after paying a series of fines in the last year.
The operator was fined $2,000 by the New Jersey Division of Gaming Enforcement in July 2024 for accepting wagers on a Professional Fighters League event that had already taken place (PFL). FanDuel accepted 34 illicit wagers on PFL bouts.
The improper wagers totaled $190,904, with FanDuel self-reporting the violation.
It attributed the mistake to a lack of communication with its data providers due to a recording of the PFL event being aired on television and across streaming services.
FanDuel received a $10,000 fine in December 2024 from the Massachusetts Gaming Commission (MGC) for allowing a series of wagers on Boston College basketball before the men’s NCAA tournament. State law bans wagering on in-state colleges unless the team is participating in a specialty tournament. FanDuel allowed three wagers totaling $11 to be placed on Boston College despite the team not making the March Madness field.
FanDuel self-reported the violations and voided and refunded the flagged wagers.
Earlier this week, the MGC also levied a $15,000 civil administrative penalty against FanDuel for accepting more than 7,000 improper wagers on the LPGA before the commission approved wagering on the organization in June 2024. FanDuel reportedly allowed the bets believing the LPGA was in the International Federation of PGA Tours.
The wagers on the LPGA totaled $78,254.
