DraftKings and White Hat Receive Fines for Online Slot Game with No Payouts
Connecticut has penalized both White Hat Gaming and DraftKings after an online slot game didn't deliver any payouts in one week in August of last year. The slot game, Deal or No Deal Banker's Bonanza, was supposed to pay out almost a dollar for each dollar bet. But in that week, it didn't pay out even though the slot earned nearly $24,000 that same week. It turns out it was a computer glitch, but the mistake was, neither White Hat nor DraftKings informed the public, even though they refunded players' losses.
Connecticut has taken action against White Hat Gaming and DraftKings following a significant payout issue with an online slot game, Deal or No Deal Banker's Bonanza, which failed to pay any winners over the course of a week in August of 2023. The state's Department of Consumer Protection Gaming Division has fined the companies a total of $22,500, with DraftKings bearing the brunt of the penalty, amounting to $19,000.
A slot game with issues
The issue came to light after a report by CT Insider, revealing that the game, which had been advertised to pay out almost 95 cents for every dollar bet on it, had inexplicably failed to do so during the period from August 15 to August 21. During that time, more than 20,600 spins were made on the game by 522 players, with nearly $24,000 wagered in total. Astonishingly, not a single player won.
The game debuted on the online casino platform of DraftKings in August, attracting players with a minimum bet of 10 cents. However, unlike other similar slot games, Deal or No Deal Banker's Bonanza offered no returns, raising red flags among both players and regulators.
The root cause: a computer glitch
An investigation by Connecticut state regulators revealed the root of the problem: a computer issue that prevented the game from generating wins. This technical glitch meant that despite the high number of spins and bets placed, the game was malfunctioning, leaving players without any winnings.
In response to the investigation, DraftKings issued refunds totaling $23,909 to the affected Connecticut players. Despite this gesture, the state's investigation revealed that the players were not informed of the exact reason for the refund, leaving many unaware of the malfunction. Additionally, it was reported that the Department of Consumer Protection was only told of the issue a week after the game was fixed and then re-launched.
Transparency and reliability a concern
This incident has raised concerns about the transparency and reliability of online gaming platforms. Slot games like Deal or No Deal Banker's Bonanza are designed to pay out at a predetermined rate, typically offering players a chance to win back a portion of their wagers. However, when a game malfunctions, as in this case, it can erode trust in the fairness of online casinos.
The fines imposed by Connecticut's Department of Consumer Protection demonstrate the importance of regulatory oversight in the online gaming industry. As online gambling continues to grow not only in Connecticut but in other states, incidents like these highlight the need for more stringent controls and quick action to protect consumers.
DraftKings and White Hat Gaming's response to the issue has been met with mixed reactions. While the refund of nearly $24,000 to affected players is a positive step, the lack of communication regarding the malfunction has been criticized. Transparency in such situations is crucial to maintaining player trust and ensuring that gaming companies are held accountable for their platforms' performance.