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DraftKings fined in Connecticut for online slot machines that paid zero wins for a week

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DraftKings fined in Connecticut for online slot machines that paid zero wins for a week


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DraftKings and another gambling company 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 in August 2023.

The game, Deal or No Deal Banker’s Bonanza, was advertised to pay out almost 95 cents for every dollar wagered on the game.

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But from Aug. 15 through Aug. 21 last year, a total of 522 people in Connecticut who wagered nearly $24,000 on the game over more than 20,659 spins received no wins, according to a report by Connecticut’s Department of Consumer Protection.

“Effectively, 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,” according to the report, which was first detailed by the CT Insider news outlet on Tuesday.

A spokeswoman for the DCP said, “It was the first incident [in the state] where an online slot machine was not paying out as advertised.”

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The report found that neither DraftKings and the game’s producer, White Hat Gaming, notified Consumer Protection of the problem until the department requested information from the companies on Aug. 31 last year.

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That was more than a week after customers complained about the situation, and after an internal investigation by White Hat Gaming determined the cause of the problem in paying out as advertised.

A file in the game’s software had not been loaded properly, according to the Consumer Protection probe. The game was relaunched on Aug. 22 after a fix was implemented.

Nearly a week earlier, on Aug. 16, a player told DraftKings in an online complaint that they had played “a couple hundred spins” of bets of 20 cents apiece, “and not had one single winning spin or partial win,” according to a summary of complaints reviewed in the probe.

“I believe that RTP is incorrect,” wrote the customer, using the gambling acronym “Return to Player.”

A DraftKings representative wrote the customer in response on Aug. 17, suggesting there was no problem.

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“I understand how frustrating it can be when you haven’t hit a win,” the rep wrote. “However, all casino games are random, regardless of the player or length of time you’ve been playing.”

Another company rep, in response to a second customer’s complaint about many spins without seeing a payout, assured the player that the casino platform was regulated by the Consumer Protection Department and “are monitored on a regular basis to ensure fairness.”

The rep also told the player that there was an option to “self-regulate your play” but setting limits on wagers on the platform.

Another customer on Aug. 20 wrote DraftKings that he had played the game with more than 100 spins without a payout.

“I believe this is a problem as I have never played a slot game where I haven’t won a single cent in over 100 spins,” the player wrote.

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In a response to that complaint, a DraftKings rep wrote, “I understand it can be frustrating to have a bit of a cold streak, but I can assure you that there is nothing wrong with the game itself.”

That response came three days after DraftKings had informed White Hat of three patron complaints about the game not paying out and after White Hat’s business intelligence team discovered an issue with the RTP settings on the game, according to the Consumer Protection Probe.

On Aug. 29, a full week after White Hat identified the glitch and fixed it the game, “all patrons were eventually refunded” on their play during the affected week “without any notification from Draft Kings” about the reason for the refund, the DCP said in its report.

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 agreed to pay the department $19,000 to settle the same allegations.

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Kaitlyn Krasselt, the spokeswoman for the Department of Consumer Protection, told CNBC that although “White Hat responded swiftly to inquiries from DCP investigators … The response from DraftKings to the consumer complaints was not satisfactory.”

“And as a result of the DCP investigation, [DraftKings] was instructed to implement greater internal controls for their products, submit regular reports for new games to DCP, and make improvements to their consumer complaints process,” Krasselt said.

She also said the incident with the slots game last year “is a great example of something that, if we were not there to intervene, may not have been taken seriously until our investigators got involved.”

A DraftKings spokesperson, in a statement to CNBC, said, “Our customers’ satisfaction and the integrity of our products are central to our success.”

“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,” the spokesperson said.

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“The issue in Connecticut arose from an error on the game developer’s side. 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.”

White Hat Studios, a division of White Hat Gaming, in a statement to CNBC, said, “Delivering a fun, fair and transparent gaming experience is a top priority at White Hat Studios.”

“Regarding the technical fault concerning one of our games live with DraftKings in Connecticut in 2023, we took immediate action as soon as we became aware of the situation,” the company said. “It was a one-off incident and all affected players were fully refunded by DraftKings.”

“We take player protection very seriously and worked closely with the regulator and DraftKings to resolve the issue.”



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Connecticut

Woonsocket man was crossing I-95 in Connecticut when he was struck and killed

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Woonsocket man was crossing I-95 in Connecticut when he was struck and killed



Suniel Michael Ross, 41, was struck Wednesday after walking onto the northbound side of Interstate 95 in West Haven, Connecticut.

A Woonsocket man was struck and killed Wednesday afternoon when he tried crossing Interstate 95 in West Haven, Connecticut, according to the Connecticut State Police.

He was identified as Suniel Michael Ross, 41, of 193 Sayles Street, Apt. 1, according to the police.

At about 12:25 p.m., Ross crossed three travel lanes on the southbound side of the highway and went into the center median, according to the Connecticut State Police. He then jumped over the center median, walked onto the northbound side and was struck in the center lane, the police said.

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The vehicle that struck Ross, a 2010 Toyota Rav 4, had been traveling in the left lane but veered right to avoid the vehicle in front of it when it stopped abruptly after Ross walked in front of it, the police said.

Ross was taken to Yale New Haven Hospital, where he died, according to the police.

The report does not indicate why Ross was on the highway.

A LinkedIn page for Ross says he held an M.B.A. from Bridgewater State University and retired in 2020 after 17 years of both active and reserve service with the Navy. According to the profile, he worked for YouthBuild Providence from October 2021 until April 2022.

“I enjoy spending time with my son, going to live music, reading, and exploring different cultures and societies,” the profile says.

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As police investigated the crash, the section of highway was closed for several hours.

The police are asking anyone who witnessed the crash or has dash camera video to contact them at 203-696-2500.



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Serious crash closes Route 72 in New Britain

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Serious crash closes Route 72 in New Britain


Part of Route 72 was closed in New Britain following a serious crash on Thursday night.

Route 72 West was closed near exit 3 after a car rollover. State police said serious injuries are being reported.

A few lanes of traffic on the eastbound side of the highway were also closed.

The crash happened around 7:50 p.m. Anyone driving in the area is asked to take alternate routes.

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No additional information was immediately available.



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CT ‘baby bonds’ program discussed at Federal Reserve conference

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CT ‘baby bonds’ program discussed at Federal Reserve conference


Connecticut officials joined advocates and researchers at the Federal Reserve on Thursday to talk about the state’s trailblazing ‘baby bonds’ program, and how it might ultimately serve as a proving ground for efforts around the country.

The program, which launched in July 2024, invests $3,200 on behalf of babies enrolled in Connecticut’s Medicaid program, HUSKY. More than half the babies born in Connecticut are to mothers on Medicaid, and around 15,600 babies are expected by be enrolled in the program annually. Eligible participants live in every one of the state’s cities and towns.

Connecticut is so far unique in passing sustained, state-level support for the concept, but small experiments are popping up around the country, including one through private philanthropy in Georgia and a temporary program for children in foster care in California who were impacted by COVID. Several other states, including New Jersey and Massachusetts, are considering baby bonds-type programs.

The conference Thursday kicked off with a conversation between Connecticut State Treasurer Erick Russell and Darrick Hamilton, a professor at The New School and an economist who is credited with helping to create the concept. They discussed Connecticut’s first in the nation program, and how it may be planting the seeds of a national movement.

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“We’re building political momentum, we start local,” said Hamilton, who is the founding director of the Institute on Race, Power and Political Economy at The New School. “But at the end of the day, to make this come into fruition, we’ve really got to get the federal government involved to ensure that all children of the United States will be able to get into that vehicle of wealth building.”

Russell spoke about his childhood growing up in New Haven, sweeping the floor and working the register after school at his parents’ store. No one he knew as a kid owned their own home and working paycheck to paycheck was a way of life.

Russell said he is trying to end poverty in Connecticut, and baby bonds are but one of many strategies required to achieve that goal.

“We understand that baby bonds, by itself, is not the solution to that problem,” Russell said. “This is a piece to the puzzle as we continue to make key investments in things like education and early child care and bringing down the cost of housing.”

Baby bonds can provide funds for a down payment on a home, money to open a business or pay for school. But officials said the existence of the funds may also help in less obvious ways: baby bonds can encourage a family to imagine a child’s future and plan for it. The funds could stave off gentrification by creating a cohort of people who are able to cash in at around the same time and even pool resources to support their neighborhood. And they help link parents to state supports through a positive vehicle.

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“There’s a huge lack of trust between members of the community and government,” Russell said. “Now we actually have this positive way of connecting with people, right? Connecting with parents who are saying, ‘My child is going to have access to this resource and this opportunity that I could have never imagined.’”

A recipient must be between 18 and 30 years old to use the funds, pass a financial literacy test, and be a Connecticut resident. That money is expected to eventually be worth at least $11,000 and as much as $24,000, depending when the recipient chooses to cash in the bond.

Though the initiative received strong support from many political leaders, Gov. Ned Lamont nearly killed the program in 2023. The decision to draw from a surplus in Connecticut’s special reserve fund instead of borrowing money, as was originally planned, allowed Lamont and Russell to reach a compromise and the program was finally launched in July 2023. In fact, as Russell mentioned during the conference, the so-called baby bonds ended up not being bonds at all.

At Thursday’s event, the history of political infighting wasn’t discussed. Rather, advocates and researchers focused on the promise of the program and the synergy with another initiative: ‘guaranteed income.’

Stanford University researchers Max Rong and David Grusky explained why, based on their research modeling, simultaneously offering families guaranteed income and baby bonds may be a superior approach to offering a more generous version of only one of these programs.

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The researchers said that guaranteed income can prove meaningful to help families from falling into poverty, relieving the stress of financial pressure from caregivers so they can form healthy attachments with their children and afford day to day expenses that keep them healthy and safe. However, just providing that cash is unlikely to allow a family to save the kind of money they need to ultimately open a business, buy a home, afford higher education and ultimately build generational wealth. On the other hand, a single infusion of money — a cashed-in baby bond— cannot undo years of underinvestment.

“You might think it doesn’t matter if you just do one or the other,” Grusky said. “What this suggests is that, given data about how the world works, you actually need both.”

Laura Clancy, the executive director of The Bridge Project, a guaranteed income program for new moms which recently launched in Connecticut, asked the room to simply trust mothers, who tend to have good judgment about what their kids need. She ended her panel by encouraging the audience to consider the power of imagination in initiatives like baby bonds and guaranteed income, and how thinking outside the box might help us upend the inequities we take for granted.

“What have we come to accept that is unacceptable?” she asked.

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