DraftKings (NASDAQ:DKNG) and another gambling company were fined a total of $22,500 by the state of Connecticut for operating an online slot machine game that failed to pay any winners on more than 20,600 spins over one week in August 2023.
The game, Deal or No Deal Banker’s Bonanza, was advertised to pay out almost 95 cents for every dollar wagered on the game.
But from Aug. 15 through Aug. 21 last year, a total of 522 people in Connecticut who wagered nearly $24,000 on the game over more than 20,659 spins received no wins, according to a report by Connecticut’s Department of Consumer Protection.
“Effectively, it was impossible for any Connecticut patron to achieve a win on the game for a period of seven days, while live on the gaming platform,” according to the report, which was first detailed by the CT Insider news outlet on Tuesday.
A spokeswoman for the DCP said, “It was the first incident [in the state] where an online slot machine was not paying out as advertised.”
The report found that neither DraftKings and the game’s producer, White Hat Gaming, notified Consumer Protection of the problem until the department requested information from the companies on Aug. 31 last year.
That was more than a week after customers complained about the situation, and after an internal investigation by White Hat Gaming determined the cause of the problem in paying out as advertised.
DKNG shares fell 14 cents to $33.51.
