Colorado gaming regulators have fined DraftKings $90,000 for accepting wagers in prohibited markets, including bets on the boxing match between Mike Tyson and Jake Paul.
DraftKings accepted at least 100 bets on the Tyson-Paul bout last year despite being prohibited from doing so, regulators said.
They also said DraftKings allowed customers to place college player prop bets in March 2025, even though Colorado law prohibits those types of bets.
Paul-Tyson wagering
The Colorado Limited Gaming Control Commission (LGCC) said it informed operators on May 20, 2024, that its director had banned wagering on the Tyson-Paul event, which took place on Nov. 15 in front of 65 million concurrent live viewers.
The LGCC said the decision was based on the fight not abiding by standard professional boxing rules, such as 2-minute rounds instead of 3 and the boxers using 14-ounce gloves instead of the typical eight or 10.
At first, DraftKings did not allow any wagers on the fight, but then it accepted more than 100 wagers from Nov. 12-15 as part of a “props pool.” This allowed bettors to pay a $10 entry fee to wager on prop markets, including for Paul vs. Tyson.
Colorado allows prop pools, but not on banned events.
The LGCC claimed that DraftKings was aware of its violation on Nov. 12 and received an alert from the commission on Nov. 15, at which time it removed the pools.
The commission said DraftKings did not report the incident until Nov. 27. It ultimately settled on a $50,000 fine for allowing the pools and failing to immediately report the violation.
Ignoring college player prop restrictions
Many states have restrictions against college player props. Some have instituted full bans, while others don’t allow bettors to wager on players from in-state schools and universities.
Colorado, which entered the legal US sports betting market in 2019, does not allow these types of wagers in any form. That includes if a player will go over or under a certain number of rebounds, if a player will hit a home run, and all other individual prop bets.
Despite the prohibition, the LGCC found that DraftKings allowed 80 bets on the performance of former Arizona Wildcats star Caleb Love ahead of a March 23, 2025, game against Oregon in the second round of March Madness.
DraftKings self-reported the incident the day after the market was posted and submitted a report to the LGCC on April 7.
Love, who played five years in college, signed a two-way deal with the Portland Trail Blazers in late June.
DratKings has had numerous run-ins with state regulators. It was forced to return $3 million to Connecticut customers earlier this month after the operator failed to properly disclose a playthrough requirement associated with a deposit promotion.
It was also fined $425,000 by the Ohio Casino Control Commission in late 2024 for allowing wagers on banned college player props.