DraftKings and White Hat Gaming have been fined over $22,000 after an incident last summer involving 522 online casino players. What happened to those players may have seemed like a case of bad luck at first, but had nothing to do with the laws of probability. It was a problem with the slot machine.
According to a report from Connecticut’s Department of Consumer Protection’s Gaming Division recently provided to the outlet CT Insider, from Aug. 15-21, 2023, players wagered over $24,000 on Deal or No Deal’s Banker Bonanza with more than 20,000 spins and produced zero wins.
Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.
Point phone camera here
However, the game advertised the average payout to be nearly 95 cents for every dollar wagered.
“Effectively, it was impossible for any Connecticut patron to achieve a win on the game for a period of 7 days, while live on the gaming platform,” the report said.
A state investigation found a file in the game’s software had not been loaded properly, leading it to be impossible for a player to win any amount of money.
The lack of winnings did not go unnoticed by players, and one reached out to DraftKings on Aug. 20, 2023.
“I believe this is a problem as I have never played a slot game where I haven’t won a single cent in over 100 spins,” the player said.
“I understand it can be frustrating to have a bit of a cold streak, but I can assure you that there is nothing wrong with the game itself,” a DraftKings representative replied.
According to the investigation, when DraftKings sent that reply it was already aware of other complaints and White Hat Gaming already had identified a glitch in the game.
The game was relaunched on Aug. 22, 2023. According to the report, a week later, all users were refunded for their play during the affected week without DraftKings giving the players an explanation.
The investigation found neither DraftKings nor White Hat notified the DCP of what was happening until Aug. 31, 2023, after the issue was fixed and regulators had reached out over player complaints.
In Jan. 2024, White Hat agreed to pay a $3,500 in fines and, in April, DraftKings paid a $19,000 fine over the companies violating state regulations and failing to comply with reporting obligations.
Both companies released statements to CNBC this week in response to the details of last year’s incident being released.
“The issue in Connecticut arose from an error on the game developer’s side,” DraftKings said. “We identified a possible issue within 48 hours of launch and immediately escalated it for investigation.”
“All impacted customers were fully refunded within days of concluding there was an issue, and we have not encountered any similar issues with this vendor,” DraftKings continued.
“Regarding the technical fault concerning one of our games live with DraftKings in Connecticut in 2023, we took immediate action as soon as we became aware of the situation,” White Hat said. “It was a one-off incident and all affected players were fully refunded by DraftKings.”
A spokesperson for the Department of Consumer Protection told CNBC that this 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.”
[JACK AYLMER]
AT FIRST GLANCE – IT MAY HAVE APPEARED TO JUST BE A CASE OF BAD LUCK. YOU CAN’T WIN THEM ALL, RIGHT? ESPECIALLY WHEN IT COMES TO GAMBLING.
BUT AT CLOSER INSPECTION – WHAT HAPPENED TO 522 PLAYERS IN CONNECTICUT DURING ONE WEEK LAST SUMMER HAD NOTHING TO DO WITH THE LAWS OF PROBABILITY – BUT A PROBLEM WITH AN ONLINE SLOT MACHINE.
AN ISSUE THE STATE FOUND TO BE SO SEVERE IT FINED THE COMPANIES BEHIND THE GAME– DRAFTKINGS AND WHITE HAT GAMING – OVER 22 THOUSAND DOLLARS.
ACCORDING TO A REPORT FROM CONNECTICUT’S DEPARTMENT OF CONSUMER PROTECTION’S GAMING DIVISION RECENTLY PROVIDED TO THE OUTLET CT INSIDER–FROM AUGUST 15TH TO 21ST 2023 PLAYERS WAGERED OVER 24 THOUSAND DOLLARS ON DEAL OR NO DEAL’S BANKER BONANZA WITH MORE THAN 20 THOUSAND SPINS – AND PRODUCED ZERO WINS.
NOT ONE.
THOUGH THE GAME ADVERTISED THE AVERAGE PAYOUT TO BE NEARLY 95 CENTS FOR EVERY DOLLAR WAGERED.
THE REPORT SAID “EFFECTIVELY, IT WAS IMPOSSIBLE FOR ANY CONNECTICUT PATRON TO ACHIEVE A WIN ON THE GAME FOR A PERIOD OF 7 DAYS, WHILE LIVE ON THE GAMING PLATFORM.”
A STATE INVESTIGATION FOUND A FILE IN THE GAME’S SOFTWARE HAD NOT BEEN LOADED PROPERLY – LEADING IT TO BE IMPOSSIBLE FOR A PLAYER TO WIN ANY AMOUNT OF MONEY.
THE LACK OF WINNINGS DID NOT GO UNNOTICED BY PLAYERS – ONE REACHING OUT TO DRAFTKINGS ON AUGUST 20TH SAYING —
“I BELIEVE THIS IS A PROBLEM AS I HAVE NEVER PLAYED A SLOT GAME WHERE I HAVEN’T WON A SINGLE CENT IN OVER 100 SPINS.”
A DRAFTKINGS REPRESENTATIVE REPLIED — “I UNDERSTAND IT CAN BE FRUSTRATING TO HAVE A BIT OF A COLD STREAK, BUT I CAN ASSURE YOU THAT THERE IS NOTHING WRONG WITH THE GAME ITSELF.”
ACCORDING TO THE INVESTIGATION – WHEN DRAFTKINGS SENT THAT REPLY IT WAS ALREADY AWARE OF OTHER COMPLAINTS AND WHITE HOUSE GAMING ALREADY HAD IDENTIFIED A GLITCH IN THE GAME.
THE GAME WAS RELAUNCHED ON AUGUST 22ND OF LAST YEAR AND ACCORDING TO THE REPORT – A WEEK LATER – ALL USERS WERE REFUNDED FOR THEIR PLAY DURING THE AFFECTED WEEK WITHOUT DRAFTKINGS GIVING THE PLAYERS AN EXPLANATION.
THE INVESTIGATION FOUND NEITHER DRAFTKINGS NOR WHITE HAT NOTIFIED THE DCP OF WHAT WAS HAPPENING UNTIL AUGUST 31ST 2023 – AFTER THE ISSUE WAS FIXED – AND REGULATORS HAD REACHED OUT OVER PLAYER COMPLAINTS.
IN JANUARY OF THIS YEAR – WHITE HAT AGREED TO PAY 3 THOUSAND 5 HUNDRED DOLLARS IN FINES AND IN APRIL DRAFTKINGS PAID A 19 THOUSAND FINE OVER VIOLATIONS OF STATE REGULATIONS AND THE COMPANIES FAILING TO COMPLY WITH REPORTING OBLIGATIONS.
BOTH COMPANIES RELEASING STATEMENTS TO CNBC THIS WEEK IN RESPONSE TO THE DETAILS OF LAST YEAR’S INCIDENT BEING RELEASED –
DRAFTKINGS SAYING QUOTE “The issue in Connecticut arose from an error on the game developer’s side. We identified a possible issue within 48 hours of launch and immediately escalated it for investigation.
All impacted customers were fully refunded within days of concluding there was an issue, and we have not encountered any similar issues with this vendor.”
WHITE HAT SAYING “Regarding the technical fault concerning one of our games live with DraftKings in Connecticut in 2023, we took immediate action as soon as we became aware of the situation.
It was a one-off incident and all affected players were fully refunded by DraftKings.”
A SPOKESPERSON FOR THE DEPARTMENT OF CONSUMER PROTECTION TELLS CNBC – THIS INCIDENT IS QUOTE “A GREAT EXAMPLE OF SOMETHING THAT, IF WE WERE NOT THERE TO INTERVENE, MAY NOT HAVE BEEN TAKEN SERIOUSLY UNTIL OUR INVESTIGATORS GOT INVOLVED.”
FIND MORE STORIES LIKE THIS ONE ON THE STRAIGHT ARROW NEW APP AND SAN DOT COM
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
