DraftKings and White Hat Gaming Penalized for Glitch in Connecticut Slot Game

White Hat Gaming following the discovery of a significant glitch in the online slot game, Deal or No Deal Banker’s Bonanza. The technical issue, which lasted from August 15 to August 21, 2023, rendered the game incapable of producing any player wins for an entire week.

Game Glitch Leads to Significant Penalties

The D imposed a $19,000 fine on DraftKings, the operator of the game, and a $3,500 fine on White Hat Gaming, the game’s supplier, after determining that the glitch affected over 20,000 plays during the week-long period. In total, 522 players in Connecticut placed a combined total of nearly $24,000 in bets without receiving a single payout, as revealed by records obtained through a Freedom of Information Act request by SBC Americas.

The root of the issue was traced back to a technical flaw in the game’s programming. According to the D report, a computer glitch caused the game to set the odds of winning to zero, making it “impossible for any Connecticut patron to achieve a win on the game for a period of seven days while live on the gaming platform.” This error was particularly alarming given that the game was d as offering a return-to-player (RTP) rate of nearly 95%, meaning players expected to receive approximately 95 cents for every dollar wagered.

An internal investigation conducted by White Hat Gaming identified the cause of the problem as a file that had not been properly loaded into the game’s software. This error prevented the game from functioning as intended. After the issue was discovered, a fix was implemented, and Deal or No Deal Banker’s Bonanza was relaunched on August 22, 2023, ending the seven-day glitch period.

A spokesperson from DraftKings addressed the incident, stating, “The issue in Connecticut arose from an error on the game developer’s side.” White Hat Gaming echoed this sentiment, emphasizing that immediate action was taken as soon as the problem was identified.

Despite the swift resolution of the technical issue, the D report highlighted significant delays in communication between the gaming companies and the regulator. The D was officially informed of the glitch on August 31, more than two weeks after the issue began and nine days after it had been resolved. Additionally, by the time the D was notified, several players had already lodged complaints about the lack of payouts.

On August 16, 2023, just one day after the glitch started, a player filed a complaint with DraftKings, claiming that “a couple hundred spins” worth 20 cents each had failed to produce any wins. The player questioned the accuracy of the game’s RTP. In response, a DraftKings representative replied the following day, “I understand how frustrating it can be when you haven’t hit a win. However, all casino games are random, regardless of the player or length of time you’ve been playing.”

Another player raised concerns on August 20, noting that over 100 spins had been played without a payout—an anomaly compared to previous experiences with online slot games. DraftKings assured the player that “there is nothing wrong with the game itself,” and attributed the lack of payouts to a possible cold streak.

Refunds and Final Steps

Eventually, DraftKings refunded all affected players in Connecticut, issuing a total of $23,909 in reimbursements. The refunds were processed on August 29, one week after the glitch had been fixed. However, according to the D’s report, the refunds were issued “without any notification from DraftKings” explaining the reason for the reimbursement. The D was only informed of the situation two days later, raising concerns about the transparency and timeliness of the company’s actions.

DraftKings later clarified its response, stating,“We identified a possible issue within 48 hours of launch and immediately escalated it for investigation. All impacted customers were fully refunded within days of concluding there was an issue, and we have not encountered any similar issues with this vendor. We have robust measures to monitor potential payout issues, and we investigate any concerns promptly. In the event of a game not functioning as intended, we ensure impacted customers are appropriately refunded.”

White Hat Gaming also issued a statement, reinforcing its commitment to player protection. “It was a one-off incident and all affected players were fully refunded by DraftKings,” the company stated, adding that it had worked closely with both the regulator and DraftKings to resolve the issue.

Prior Fines for DraftKings

This incident in Connecticut is not the first time DraftKings has faced regulatory action in recent months. In July 2023, the New Jersey Division of Gaming Enforcement fined DraftKings $100,000 for “gross errors and failures” in reporting sports betting data. The company was found to have overstated the amount of money wagered on parlay bets while understating other categories, leading to incorrect tax returns filed under the Resorts Digital online sports betting license for the period between December 2023 and February 2024.

As DraftKings and White Hat Gaming continue to address the fallout from the glitch in Connecticut, the fines serve as a reminder of the importance of maintaining accurate and transparent communication with both players and regulators to ensure a fair and trustworthy gaming environment.

Source:

”Connecticut fines DraftKings, White Hat over impossible-to-win game”, sbcamericas.com, September 04, 2024.