CHICAGO, IL - OCTOBER 16: The fantasy sports website DraftKings is shown on October 16, 2015 in ... [+]
"Problem gambling" was and will continue to be a hot topic for all states looking to partake in the regulated sports betting market, and this week it was reported that one of the regulated market's biggest players discovered that some of their preventative measures intended to combat this exact issue had failed to work.
The New Jersey Division of Gaming Enforcement announced that DraftKings reported a software glitch related to their "cool-off status" feature last November that allowed gamblers who had selected to have their wagering ability limited for a set amount of time to continue betting.
The DGE's Director David Rebuck went on to report that the feature's failure was caused by a software update that had taken place the previous month, and while it didn't fully remove a player's "cool-off" status, it did cause the time-frame to be set at zero days.
A total of 54 sports bettors are reported to have been in cool-off status at the time, and while no complaints were filed by patrons related to the October 24th - November 16th malfunction, 13 of these bettors wagered a combined total of $28.8k with DraftKings earning $3.2k from that amount.
Having discovered their own glitch, DraftKings chose to report themselves to the NJ Division of Gaming Enforcement, where they were handed a $5k fine and forced to release the $3.2k they won from the gamblers in question.
While the $5k fine seems minuscule when compared to the amount of money DraftKings has earned over their first few months in the sports betting arena, advocates of sports betting ar chalking this up as a win given that an operator decided to self report an issue to a department who has the ability to revoke their operational license all together.
New Jersey Requires Operators To Feature Suspended Modes
One of the biggest advocates for regulated sports betting in the United States, New Jersey became the poster child for other states looking to enter the space, and their gaming laws were carefully put in place to promote a fun and healthy industry as opposed to one that creates social problems.
Brick-and-mortar casinos have long been known to limit a player's bet size and even refuse to take their action at all, but this activity usually involves a sharp bettor or known professional gamblers looking to take advantage of certain situations. From a legal perspective, however, New Jersey has never required a casino to implement a system to limit bettors who wish to be restricted.
With the decision to allow mobile sports betting within state borders, New Jersey lawmakers took a stronger stance on the issue and required all operators to offer some sort of way for customers to restrict their wagering ability.
The New Jersey Online Gambling Regulations clearly state that “Internet and mobile gaming systems shall employ a mechanism that places an internet or mobile gaming account in a suspended mode."
It goes on to require a minimum suspension time of 72 hours by the sportsbook once a player has decided to request a break from the application.
For many, sports betting serves as the means to add a bit of excitement to an otherwise regular night of sports activity. Like many vices, it is intended to add a sense of rush to the situation and stimulate the participants by giving them a little bit more skin in the game.
For most, this extra adrenaline jolt is temporary and they are able to walk away, win or lose, and continue with their day. For others, a loss can trigger the desire to even up and get out of the hole they created with an erroneous prediction. For problem gamblers, the intent of betting takes on a new meaning as they are now chasing something other than the desired entertainment factor, often leaving them further down overall.
Mobile betting applications make it easier than ever for participants to lock in their wagers from the comfort of their own homes, but it also allows patrons the ability to make spontaneous, ill-timed decisions brought on by emotional responses. The 72 hour restriction requirement was put in place to allow a sports bettor time to clear his head and regroup before going down one of these holes.
With the United States regulated sports betting market still in its infancy stages, it is fair to expect a few hiccups along the road. With seven states already offering some form of sports betting, and a number of others on the cusp of passing legislation, a hot topic of debate will center around mobile applications and whether mobile betting should be offered at all.
While it is encouraging to see an operator reporting a glitch that ultimately went against state law requirements, it also highlights the inability of gaming enforcement departments to monitor their own regulations.
