DraftKings faces an investigation by the Massachusetts Gaming Commission (MGC) after a big mistake led to over 1.2 million unwanted emails sent to state residents, including people on a voluntary self-exclusion list.
DraftKings sent these emails in August telling recipients about a "bonus bet" they would get for joining a golf tournament. This raised eyebrows because many who got the emails had not bet on the tournament or even signed up with DraftKings making people wonder if this broke state rules.
The MGC has given its Investigations and Enforcement Bureau (IEB) the job to look into the matter further. DraftKings will attend a hearing to decide if the emails broke Massachusetts gambling communication laws.
Zachary Mercer, general counsel for the IEB, shared that out of the 1,230,520 emails sent, 184 went to people on the state's voluntary exclusion list. This list includes those who have chosen not to get any messages from gambling companies because they are worried about gambling problems.
Mercer pointed out that DraftKings might face consequences for breaking state gambling rules if the emails are seen as ads, marketing, or branding. He also said the emails seemed to go out to a whole list of contacts hinting that the mistake happened because people on company marketing lists who had not used the sportsbook were included.
Additionally, MGC commissioner Nakisha Skinner told the IEB to look into whether any of the people who got the emails were younger than 21, as this would be another breach.
The email explained a "dead heat reduction" rule for golf tournaments when two or more golfers tie for a winning spot. DraftKings gave affected users a "bonus bet" to make up for the mix-up. But many people who got the message had never bet on such events making them think someone had broken into their accounts.
DraftKings owned up to the mistake saying they sent the email to more people than they meant to. They did not say how the error happened though. This has left users confused and worried about those on the exclusion list who found the email troubling. Now that DraftKings is under the watchful eye of regulators, the upcoming hearing to decide their fate could lead to big consequences for the sports betting giant in Massachusetts.