The Iowa Racing and Gaming Commission has imposed $125,000 in fines on FanDuel for five separate violations of the state’s sports betting regulations, citing the operator’s failure to comply with legal wagering standards and responsible gaming requirements.
Among the infractions, as reported by Radio Iowa, was the acceptance of bets not permitted under Iowa regulations on events including the Super Bowl, certain soccer matches, and golf tournaments.
However, the most serious violation, which accounted for $30,000 of the total fines, stemmed from FanDuel’s failure to maintain functioning responsible gaming options on its platform.
FanDuel’s counsel director Ben Roth addressed the Commission during its meeting on 11 July, according to the media outlet.
Acknowledging the violations, Roth said the company “did not meet the high standard” that it holds for itself and confirmed that FanDuel had initiated corrective actions.
He outlined remediation steps, including enhanced employee training, detailed operational checklists, and increased automation to reduce the risk of manual errors.
Roth also stated that FanDuel refunded affected customers and returned any revenue generated from the prohibited bets. He asserted that the company had “disgorged itself” of all revenue from the violations and ensured no user was financially harmed.
Despite these corrective actions, the Commission voiced frustration over the frequency and timing of the violations. All five occurred within a short period, prompting concern from commissioners about FanDuel’s compliance oversight.
Commission chair Daryl Olsen emphasised that while FanDuel is one of the state’s top two operators by volume, it must be held to the same standard as Iowa’s land-based casinos.
“Five counts within a very short period of time is just too much,” Olsen said. “We expect more.”
FanDuel pays the price
Olsen highlighted the broader regulatory context, pointing out that each state’s rules are unique and that consistency is necessary in how Iowa treats online operators and physical casinos.
He emphasised that the Commission’s role is to enforce those rules and ensure that operators adhere to Iowa-specific standards.
Of the five violations, one involved only $330 in unauthorised wagers, and another was identified and pulled before any bets were placed.
However, the volume of prohibited betting was significant in other instances, with $89,000 in unauthorised wagers placed on golf events, and $62,000 on Olympic events.
The fines come amid a broader trend of regulatory scrutiny for FanDuel over the betting markets it offers.
Last December, the Massachusetts Gaming Commission (MGC) unanimously approved a $10,000 civil fine against the operator for taking three prohibited wagers on a Massachusetts men’s college basketball team earlier this year.
The violations occurred between 9 March and 13 March, 2024, when FanDuel accepted a total of $11 in future bets on Boston College’s performance in the NCAA tournament.
In this case, the bets were placed before Boston College had officially secured a spot in the competition. State rules ban betting on in-state collegiate teams unless they are actively participating in a tournament.
More recently, the MGC approved a $15,000 civil fine against FanDuel for accepting a large number of unauthorised bets on LPGA events between March 2023 and June 2024.
