North Carolina Fines bet365, Underdog for Responsible Gaming Violations

Underdog and bet365 picked up two losses in the Tar Heel State this week. 

The North Carolina Gaming Lottery Commission fined both operators for violating responsible gambling regulations. Underdog exited the regulated market in favor of sports contracts, but the violation occurred while its sportsbook was still active. As stated in our bet365 Sportsbook review, they are still active in the North Carolina sports betting market.

Underdog was fined $175,000 for failing to verify the identity of 38 underage accounts. This violates state laws, especially at a time when underage betting has become a larger concern. Fortunately, Underdog self-reported the error, avoiding a far larger fine.

The regulator fined bet365 Sportsbook $75,000 for sending push notifications to residents on the self-exclusion list. This is strictly prohibited, as the list is meant to provide a break from the temptation of gambling. The operator also self-reported its violations to the NCGLC.

The commission announced both fines during a meeting on Wednesday. 

Are Small Penalties a Mistake?

Like many betting states, North Carolina encourages operators to self-report violations to avoid bigger consequences. The goal is to create an open and honest dialogue to detect and address issues before it’s too late. It also deters sportsbooks from hiding these issues, which could make things even worse.

It is also important to note that neither bet365 nor Underdog are habitual rule breakers; a strong track record of compliance is often highlighted in any Underdog Fantasy review, which worked in their favor on Wednesday.

However, these violations involve two of the most critical issues plaguing the regulated US sports betting industry.

Underage betting has been rising, especially as many sports prediction markets set their minimum age at 18 instead of 21. Even younger bettors have been able to place wagers through a friend's or family member's account, prompting calls for a crackdown on how operators verify bettors' identities.

The violation of the self-exclusion list may be even more concerning. People who sign up for these lists acknowledge their betting has become a problem and are trying to improve. By advertising to people on the list, bet365 and other operators are obstructing that recovery process.

The two North Carolina operators aren’t known for dishonest practices, but similar violations are popping up involving their rivals across the US. This has some people wondering if the soft-handed approach is truly working.