DraftKings and White Hat Gaming Fined $22,500 for Online Slot Machine Glitch That Prevented Wins
DraftKings, a leading sports betting and online gambling company, and White Hat Gaming, the developer of the online slot machine in question, were penalized a combined $22,500 by the Connecticut Department of Consumer Protection (DCP) for operating an online slot machine game that failed to payout any winners over a week in August 2023. The game, Deal or No Deal Banker’s Bonanza, was advertised to provide a Return to Player (RTP) rate of nearly 95% – meaning it was expected to return close to 95 cents for every dollar wagered. However, a technical glitch in the game prevented it from generating any wins at all for over 20,600 spins, affecting 522 Connecticut players who wagered nearly $24,000 on the game.
Key Takeaways
- A Major Glitch: A technical fault in the Deal or No Deal Banker’s Bonanza slot machine prevented any player from winning over a week in August 2023, despite an advertised RTP of close to 95%.
- Extensive Investigation: The Connecticut DCP conducted a thorough investigation, uncovering multiple player complaints about the game’s lack of payouts and finding that the issue was a software error.
- Slow Response and Refunds: DraftKings initially assured players that the game was functioning correctly and that "all casino games are random." The company refunded players only after an internal investigation by White Hat Gaming confirmed the glitch and fixed the issue.
- Penalties and Accountability: The DCP fined both DraftKings and White Hat Gaming for operating a non-compliant slot machine and for failing to notify the department promptly about the issue.
A Week of Zero Payouts and Player Frustration
The Deal or No Deal Banker’s Bonanza game went live on the DraftKings platform on August 15, 2023. Within days, players began noticing a strange pattern: no matter how many spins they played, they were not receiving any wins. Players who had wagered significant amounts of money were left frustrated and confused.
One player, who had been playing the game for several hours and had yet to see a single win, wrote to DraftKings stating, "I believe that RTP is incorrect." He had played "a couple hundred spins" and "not had one single winning spin or partial win." In response, DraftKings initially dismissed the player’s concerns, claiming "all casino games are random" and assuring them that the game was subject to regular monitoring by the DCP to ensure fairness.
However, multiple players reported similar experiences, with one stating, "I have never played a slot game where I haven’t won a single cent in over 100 spins." Despite these repeated complaints, DraftKings continued to assure frustrated players that there was nothing wrong with the game.
Internal Investigation Uncovers Glitch
Behind the scenes, White Hat Gaming was conducting its own investigation into the reported issues. On August 16, their business intelligence team discovered a critical error in the game’s software that was affecting the RTP and preventing payouts. A file was not loaded properly, rendering the game effectively unplayable for any winning outcomes.
By August 22, White Hat Gaming had implemented a fix, and the Deal or No Deal Banker’s Bonanza game was relaunched. However, it took an additional week for all affected players to receive refunds, and no official notification was sent out by DraftKings to explain the reason for the refunds.
Fines and Consequences
The Connecticut DCP initiated an investigation into the incident, finding that both DraftKings and White Hat Gaming violated state regulations by operating an online slot machine that did not meet advertised payout standards. The DCP also criticized DraftKings for its handling of player complaints, stating that the company’s response was "not satisfactory."
As a result of the investigation, White Hat Gaming agreed to pay a $3,500 fine, while DraftKings was fined $19,000. The DCP also imposed further requirements on DraftKings, including the implementation of stricter internal controls for its products, regular reporting on new game launches, and improvements to its consumer complaints process.
Lessons Learned and Moving Forward
This incident serves as a stark reminder of the importance of transparency and accountability in the online gambling industry.
- Prioritize Player Experience: Companies operating online gambling platforms must prioritize the player experience by ensuring game integrity and fairness.
- Prompt Response to Complaints: Promptly addressing player concerns and complaints is crucial for maintaining trust and demonstrating a commitment to fair play.
- Transparency in Game Operations: Being transparent about how games are designed, regulated, and tested helps build trust with players.
- Robust Internal Monitoring Systems: Companies need robust internal monitoring systems to identify and address potential issues before they impact players.
The DCP’s investigation and subsequent fines underscored the need for vigilant oversight of online gambling platforms to protect consumers and ensure a fair and transparent gaming environment. This case also highlighted the importance of collaboration between regulators and industry stakeholders in identifying and addressing potential issues within the growing online gambling sector.
