New Jersey Fines Tipico Sportsbook One Year After Its US Exit

Tipico’s investment in the US sports betting market continues to haunt them.

The New Jersey Department of Gaming Enforcement (NJDGE) has levied a $25,000 fine against Tipico Sportsbook, a year after it exited the US sports betting market. The regulator found that the sportsbook had violated self-exclusion rules and canceled payouts due to incorrect odds being offered. The fine is the only penalty assessed by the NJDGE. 

The first violation occurred over three years ago when Tipico mistakenly sent e-mail advertisements to customers on the self-exclusion list. The operator didn’t notice the error until almost a year later, leading to over 900 violations. According to Tipico, the error was caused by a new third-party system that the markets department was using. 

The second violation happened shortly before the sportsbook pulled out of the US market. The platform offered inflated odds due to a system error. When a player attempted to cash out on 41 parlays with incorrect odds, Tipico canceled the requests and notified the NJDGE.

The company has acknowledged both mistakes and has worked closely with the regulator once they were identified. 

Tipico Avoids More Severe Penalties

The amount of the fine shows that the NJDGE is relatively small given the violations committed. While odds errors aren’t anything new, violating self-exclusion laws is far more serious. The continued rise in problem gambling remains a massive concern for lawmakers and regulators, leading to severe consequences being handed out to violators.

Tipico’s decision to voluntarily reach out is one reason the NJDGE decided to limit the fine. The other was likely the operator’s exit from the US market. Had they remained, the regulator may have used a far harsher penalty to send a message to the rest of the industry.