The practice of messenger betting is illegal in New Jersey and runs afoul of DraftKings’ own terms and conditions.įederal law enforcement sources told Sports Handle last fall that the case is not isolated, indicating that there are other known instances of illegal proxy betting nationally. Stevens used Porter, the proxy, to place dozens of out-of-state wagers on his New Jersey DraftKings account while he remained in Florida. The VIP whale player made the wagers from Florida through longtime friend Larry Porter, a Garden State resident. Stevens made two identical bets on a 3-leg parlay in October 2020, wagering $3 million in total. DraftKings does not provide sports betting in Florida, where presently it is illegal.Įlection coverage has dominated the news cycle over the last 72 hrs but yesterday published a fairly extensive story on allegations of proxy betting at DraftKings Interested to see how prevalent proxy betting is among whales as we dig deeper The allegations came to light in November 2020 when Sports Handle published a 2,700-word exclusive feature on DraftKings’ business relationship with Eric Stevens, the VIP customer based in Jacksonville. The settlement, which became public late last week, stems from a 2020 case involving messenger betting activities of a Florida customer with an account in the Garden State. 18, DraftKings agreed to pay a $150,000 civil penalty to the state of New Jersey under a stipulation of settlement with the state’s attorney general.

In an ironic twist, the presentation concluded hours before the company began to deal with the fallout from settlement of a troubling, months-long investigation.

In recent weeks, DraftKings CEO Jason Robins has gushed about his sportsbook’s performance in New Jersey, which has already exceeded his expectations for attaining profitability under the company’s state playbook methodology.Īt an annual Investor Day presentation on March 3, DraftKings disclosed that its operations in New Jersey generated $68 million in contribution profit in Fiscal Year 2021, making it one of only five states where the company turned a profit last year.

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