DraftKings fined in Colorado for Tyson-Paul bets, college prop
DraftKings has been fined $90,000 by the Colorado Limited Gaming Control Commission (LGCC) for accepting bets on two types of events that are not permitted under state regulations. These included a celebrity boxing match and prop bets on college players. These violations highlight ongoing issues with compliance in the sports betting industry and raise concerns for both operators and users regarding the legality of certain wagers.
Tyson vs. Paul betting violation
The boxing match between Mike Tyson and Jake Paul did not follow standard professional boxing rules. It featured shorter rounds and heavier gloves, which led the Colorado Limited Gaming Control Commission (LGCC) to rule it ineligible for betting in May 2024.
Despite the LGCC’s decision, DraftKings accepted over 100 bets on the fight through a “prop pool” between 12 and 15 November 2024. Prop pools involve entry fees and focus on specific outcomes within an event, rather than the result. While prop pools are allowed in Colorado, they can only be used for events approved for betting. The Tyson-Paul fight was not approved, and DraftKings was aware of this.
Timeline of events
The LGCC formally banned betting on the Mike Tyson vs. Jake Paul boxing event on 20 May 2024, because of its unconventional format. Nevertheless, from 12 to 15 November 2024, DraftKings provided a prop pool on the bout, enabling customers to wager on results. On 15 November 2024, the LGCC notified DraftKings that this action violated state regulations. DraftKings reported the incident to the commission on 27 November 2024.
Delay in reporting and its consequences
The LGCC notified DraftKings of the betting infraction on 15 November 2024, but the company failed to report the matter until 27 November 2024, causing a 12-day delay. The state’s obligatory reporting requirements were breached by this delay. Because DraftKings accepted illegal bets and neglected to disclose the violation in a timely manner, the LGCC consequently fined the company $50,000.
Caleb Love prop bet violation
According to Colorado state law, proposition wagers on specific collegiate athletes are prohibited. DraftKings took 80 wagers on a game played by Arizona collegiate basketball player Caleb Love on 23 March 2025, when he was still a student-athlete. Although Love later joined the NBA, the bets were placed while he was in college, making them illegal under Colorado regulations.
Unlike a previous incident involving a prohibited event, DraftKings reported this violation the following day and submitted a formal incident report by 7 April 2025. The Colorado Limited Gaming Control Commission (LGCC) imposed a $40,000 fine but acknowledged the prompt reporting.
Regulatory compliance and company response
In a statement, DraftKings said it has improved its internal processes and worked with the LGCC to rectify the infractions. To reduce the possibility of future regulatory violations, the company said that it is modernising its internal systems.
DraftKings stated to CPR News, “We promptly addressed the issues in coordination with the commission and have taken steps to strengthen our processes. We remain committed to upholding all regulatory standards in every jurisdiction where we operate.”
Comparison of penalties
DraftKings has been subject to numerous state-specific regulatory fines. The corporation received a $90,000 penalty in Colorado for taking illegal bets and not disclosing the infraction in a timely manner.
DraftKings consented to pay a $3 million penalty in Connecticut for promotional bonuses given out from October 2021 to January 2023. The issue involved a lack of transparency regarding the number of times users needed to wager their bonus before they could withdraw funds, affecting over 7,000 customers.
In New Jersey, DraftKings was fined $100,000 for submitting inaccurate data on parlay bets to state regulators. Additionally, in December, the company received a separate $20,000 fine for accepting bets on unapproved Russian basketball games during the 2020–2021 period.
