DraftKings forced to pay out $934,000 after costly trader error

US betting company DraftKings has been ordered to pay out more than US$934,000 to a punter from Massachusetts after the state’s gaming regulator unanimously rejected the company’s request to void 27 parlay wagers placed on what DraftKings called an “obvious error.”

The Massachusetts Gaming Commission (MGC) ruled that the wagers, placed on Toronto Blue Jays outfielder Nathan Lukes’ hit totals during the ALCS, must stand, despite DraftKings arguing that a trader’s misclassification of Lukes as a “non‑participant” allowed the patron to stack correlated bets at inflated odds.

“It’s the cost of doing business,” commissioner Nakisha Skinner said. “You have to be diligent in your offerings… this is an obvious error for DraftKings. The in‑house controls should have caught this.”

The patron wagered $12,950 across 27 parlays, combining Lukes’ five‑plus, six‑plus, seven‑plus and eight‑plus hit thresholds, legs that should not have been parlayable.

By adding a small, unrelated leg to each ticket, the bettor created 27 unique parlays. Lukes finished the series with nine hits, resulting in 24 winning bets and a total return of $934,147.83.

DraftKings argued the customer knowingly exploited the mistake arguing they were able to obtain higher odds with no additional risk.

“For all intents and purposes, we believe this customer was engaging in fraud… we don’t believe that behaviour should be rewarded.”

But commissioners pushed back, saying DraftKings failed to provide evidence supporting claims of deception.