Colorado has fined DraftKings a total of $90,000 for allowing bets on two prohibited markets in the state.
The Colorado Limited Gaming Control Commission (LGCC) stated at a meeting on Thursday that DraftKings first took at least 100 bets on the boxing match between Mike Tyson and Jake Paul last November and then allowed college player prop wagers in March 2025.
The commission said in its meeting materials that it told operators on May 20, 2024, that its director had rejected Tyson-Paul as a wagerable event due to the fact that it had different rules than a standard pro boxing match, such as shorter rounds and heavier gloves.
However, DraftKings took at least 100 bets on the fight between Nov. 12 and 15 through a “props pool,” wherein bettors were required to pay a $10 entry fee. While Colorado allows those types of pools, wagering on this particular event was prohibited, and the LGCC asserted that DraftKings was aware of the violation as of Nov. 12.
On Nov. 15, the LGCC’s sports wagering division alerted DraftKings to the violation and the sportsbook removed the offering and refunded bettors.
The Division of Gaming determined that DraftKings committed an additional offense by not reporting the incident until 12 days later on Nov. 27. It fined DraftKings $50,000 for the Tyson-Paul violations and acknowledged that the operator has admitted fault.
College player props a big no-no
The LGCC also fined DraftKings $40,000 for a separate incident in which it took 80 wagers on the performance of then-Arizona Wildcats college basketball player Caleb Love for a March 23, 2025 game. Love has played for the NBA’s Portland Trail Blazers since July 1 after going unselected in the 2025 NBA Draft.
Accepting college player prop bets is strictly banned in Colorado, although team college props are legal.
DraftKings self-reported the Love prop bets the day after the market was listed and filed an incident report with the LGCC on April 7.
“We are aware of the matters addressed in the Colorado Limited Gaming Control Commission agenda,” a DraftKings spokesperson told SBC Americas. “We promptly addressed the issues in coordination with the Commission and have taken steps to strengthen our processes.
“We remain committed to upholding all regulatory standards in every jurisdiction where we operate and to delivering a responsible, seamless customer experience.”
DraftKings paying $3M in Connecticut
The $90,000 in Colorado fines pales in comparison to the $3 million DraftKings is on the hook to pay in Connecticut.
The operator is returning $3 million to customers following an investigation by that state’s Department of Consumer Protection (DCP) into its bonus offers. The DCP reached a settlement with DraftKings that requires the Boston-based company to return funds to approximately 7,000 consumers in Connecticut.
The settlement comes after an investigation into DraftKings amid allegations that the operator had violated gaming law through its casino deposit and general bonus offers between October 2021 and January 2023. DraftKings allegedly offered bonuses that promised a particular deposit match or bonus bet amount but included a playthrough requirement that was not expressly marketed by the company.
The settlement requires DraftKings to not advertise online casino bonuses in Connecticut that “require a consumer to play through their deposit and bonus more than one time without clearly disclosing the required playthrough to the patron.”
According to the settlement agreement, DraftKings “denies all allegations” and “denies any and all liability or wrongdoing.”
