Category
🥇
SportsTranscript
00:00So, let's get to DraftKings here, another story here about compliance reviews and my
00:07understanding from reading this story.
00:09By the way, you can read all about it at LegalSportsReport.com.
00:12This is surrounding credit card usage and deposits.
00:15Tell us more.
00:16Yeah, so Massachusetts Gaming Commission, of course, as we've talked about, whether
00:21it's me or Sam or Matt or whoever comes on here from Legal Sports Report, Massachusetts
00:26is by far the most active regulator.
00:28They have regular meetings, they're very lengthy, they're very in-depth and detailed.
00:33And they set a hearing earlier this year to kind of go through some problems that DraftKings
00:40had last year.
00:42And then a couple other instances happened earlier this year that they said, well, we
00:46got to postpone this, do a little bit more investigating and pushed it back.
00:49This was last week that this hearing occurred.
00:52And it is because DraftKings had a little flaw in their system that they had promised
00:57when Massachusetts would go online, wouldn't be there.
01:00But what happened is through their universal wallet, they allowed some Massachusetts bettors
01:05to use credit card funds to place bets, which Massachusetts sports betting law does not
01:11allow for credit card funds to be used in sports betting.
01:14So that's basically what it was.
01:18We're in an investigation.
01:19There was no conclusion to the hearing.
01:21The Gaming Commission still wants more and more information to determine what action,
01:26if any, is taken against DraftKings.
01:28It has fixed the issue as far as the commission can tell.
01:33Just a kind of an interesting situation here because, you know, a universal wallet is a
01:38universal wallet.
01:39A lot of people are excited about that because you can cross your borders and use it.
01:42But when there's a flaw in the system like that, you know, and it breaks a regulatory
01:48statute, it gets a little iffy for the commissioner.
01:52So just we'll see what happens.
01:54They questioned a lot of DraftKings employees last week to kind of determine how it happened
01:58and what went wrong.
02:00But again, no conclusion yet.
02:02I'm sure we'll be able to fill you in again soon to kind of figure out what happens there.