DraftKings fined in Connecticut for online slot machines that failed to pay any wins for a week.

• In August 2023, DraftKings and White Hat Gaming were fined a total of $22,500 by the state of Connecticut for operating an online slot machine game that failed to pay any winners on more than 20,600 spins over one week.
• The game, Deal or No Deal Banker's Bonanza, was marketed as offering nearly 95 cents in payouts for every dollar bet on the game.
• Last year, from Aug. 15 to Aug. 21, 522 people in Connecticut who wagered $24,000 on the game over 20,659 spins received no wins, according to a report by Connecticut's Department of Consumer Protection.

In August 2023, two gambling companies were fined a combined total of $22,500 by the state of Connecticut for operating an online slot machine game that failed to pay any winners on over 20,600 spins during that week.

The game, Deal or No Deal Banker's Bonanza, was marketed as offering nearly 95 cents in payouts for every dollar bet on the game.

Last year, from Aug. 15 to Aug. 21, 522 people in Connecticut who wagered $24,000 on the game over 20,659 spins received no wins, according to a report by Connecticut's Department of Consumer Protection.

According to the report, which was first detailed by the CT Insider news outlet on Tuesday, it was impossible for any Connecticut patron to achieve a win on the game for a period of 7 days while live on the gaming platform.

An online slot machine failed to pay out as advertised for the first time in the state, according to a spokeswoman for the DCP.

Neither DraftKings nor the game's producer, White Hat Gaming, informed Consumer Protection of the issue until the department requested information from the companies on Aug. 31 last year.

After a week of customer complaints and an internal investigation by White Hat Gaming, the issue with paying out as advertised was resolved.

The Consumer Protection probe found that a file in the game's software was not loaded correctly. The game was relaunched on Aug. 22 after a fix was implemented.

A player complained to DraftKings on Aug. 16 that they had played hundreds of bets worth 20 cents each and had not won a single spin or partial win.

"The customer wrote that they believe the acronym "Return to Player" is incorrect when referring to gambling."

On Aug. 17, a DraftKings representative informed the customer that there was no issue.

"Although it can be frustrating not to have won at the casino, it's important to remember that all games are random and not influenced by the player or length of time spent playing."

The Consumer Protection Department regulates the casino platform, which is regularly monitored to ensure fairness.

The rep informed the player that they had the option to control their play by setting limits on wagers on the platform.

On Aug. 20, another customer informed DraftKings that they had played the game over 100 times without receiving any payouts.

"I have never won a single cent in over 100 spins of any slot game, which I believe is a problem," the player stated.

The DraftKings representative responded to the complaint by stating, "Although it can be frustrating to experience a cold streak, I can assure you that the game itself is not the issue."

According to the Consumer Protection Probe, three days after DraftKings informed White Hat of patron complaints about the game not paying out, White Hat's business intelligence team discovered an issue with the RTP settings on the game.

The DCP reported that on Aug. 29, a week after White Hat identified and fixed the glitch, all patrons were eventually refunded on their play during the affected week without any notification from Draft Kings about the reason for the refund.

In January, White Hat agreed to pay the DCP $3,500 in fines to settle allegations that the game operated for a week with a 0% Return to Player in violation of state regulations and that the company failed to comply with reporting obligations.

In April, DraftKings reached a settlement with the department for $19,000 to resolve the same allegations.

Kaitlyn Krasselt, the spokesperson for the Department of Consumer Protection, stated that while White Hat promptly addressed inquiries from DCP investigators, DraftKings' response to consumer complaints was unsatisfactory.

As a result of the DCP investigation, DraftKings was directed to enhance their internal controls, submit regular reports for new games to DCP, and improve their consumer complaints process, according to Krasselt.

The slots game incident from last year is a great example of something that may not have been taken seriously until our investigators intervened.

A DraftKings representative stated to CNBC that the satisfaction of their customers and the integrity of their products are crucial to their success.

The spokesperson stated that we have strong monitoring measures in place to detect potential payout problems and promptly investigate any concerns. In the event of a malfunctioning game, we guarantee that affected customers receive a proper refund.

"The problem in Connecticut was caused by a mistake made by the game developer. We discovered a potential issue within 48 hours of the launch and promptly escalated it for investigation. All affected customers were fully refunded within a short period after concluding that there was an issue, and we have not experienced any similar problems with this vendor."

White Hat Studios, a division of White Hat Gaming, stated that providing a fun, fair, and transparent gaming experience is their top priority.

"The company promptly acted upon the technical fault that occurred with one of their games on DraftKings in Connecticut in 2023. This was a unique occurrence, and all affected players were fully refunded by DraftKings."

"The issue was resolved with the help of the regulator and DraftKings, as player protection is a top priority for us."