In a significant regulatory action, the state of Connecticut has fined DraftKings and another gambling company, White Hat Gaming, a total of $22,500. The fines were imposed due to operational issues with an online slot machine game named “Deal or No Deal Banker’s Bonanza,” which failed to pay out any winners across more than 20,600 spins during a week in August 2023.

Overview of the incident:

The game, which was advertised to return (RTP) almost 95 cents for every dollar wagered, did not award any winnings to the 522 Connecticut players who collectively wagered nearly $24,000 from August 15 to August 21. According to a report by Connecticut’s Department of Consumer Protection (DCP), it was “effectively impossible for any Connecticut patron to achieve a win on the game for a period of 7 days, while live on the gaming platform,” highlighting a severe lapse in game functionality and oversight.

The DCP’s report, initially detailed by the CT Insider news outlet, revealed that neither DraftKings nor White Hat Gaming notified the Consumer Protection of the malfunction until the department sought information following customer complaints. This failure in prompt reporting occurred despite an internal investigation by White Hat Gaming, which quickly identified the problem in the game’s software—a file had not been loaded properly. The game was subsequently relaunched on August 22 after the necessary corrections were made.

The issue first came to light when a player reported to DraftKings on August 16, after having conducted “a couple hundred spins” without a single win, suggesting a discrepancy in the “Return to Player” (RTP) rate. Despite this, a DraftKings representative initially responded by stating, “I understand how frustrating it can be when you haven’t hit a win. However, all casino games are random, regardless of the player or length of time you’ve been playing.”

Following further complaints, another DraftKings representative reassured another player that the platform was regulated and monitored for fairness, and advised the player on how to “self-regulate” their play by setting limits on their wagers. It was not until after several complaints and an internal discovery of an RTP settings issue that DraftKings and White Hat Gaming took corrective action.

Settlements and fines:

By January, White Hat agreed to pay a $3,500 fine to the DCP to settle allegations related to the game operating with a 0% RTP in violation of state regulations and failing to meet reporting obligations. DraftKings later settled with a $19,000 payment in April.

As CNBC reports, Kaitlyn Krasselt, a spokeswoman for the DCP, emphasized the importance of regulatory oversight, stating, “The response from DraftKings to the consumer complaints was not satisfactory. And as a result of the DCP investigation, [DraftKings] was instructed to implement greater internal controls for their products, submit regular reports for new games to DCP, and make improvements to their consumer complaints process.” She added that the incident “is a great example of something that, if we were not there to intervene, may not have been taken seriously until our investigators got involved.”

A DraftKings spokesperson highlighted the company’s commitment to customer satisfaction and product integrity, ensuring that all impacted customers were refunded promptly once the issue was identified. Meanwhile, a statement from White Hat Studios, a division of White Hat Gaming, reiterated their dedication to delivering a fair and transparent gaming experience, noting that the incident was a one-off and that affected players were fully refunded by DraftKings.