Michigan has fined DraftKings $25,000 for failing to process a user withdrawal request of nearly $20,000 and not giving a reason for doing so.
The Michigan Gaming Control Board announced the fine at its public hearing on June 10.
In records Gambling Harm obtained through a FOIA request, DraftKings (Crown MI Gaming, LLC) signed a document acknowledging the violation on April 24, 2025.
The DraftKings Michigan fine marked a “full and final resolution” of the violation.
DraftKings Michigan Violation
Background on the violation is scarce, but Gambling Harm obtained records showing that the problem began in September 2023. DraftKings didn’t honor a player’s request to withdraw $19,028.96.
“This continued until January 2024,” said the MGCB’s Acknowledgement of Violation document.
“Licensee [DraftKings] did not continually update [the patron] every 10 business days of the status of the investigation. Licensee also did not allege fraudulent conduct by [the patron] or other conduct by [the patron] that would provide grounds for licensee to decline to honor the request to withdraw funds.”
The records didn’t mention the form of gambling—sports betting or casino—that the customer engaged in.
DraftKings didn’t return a request for comment from Gambling Harm.
The violation came as Michigan online casino revenue set multiple records in 2025.
Problem Gambling Concerns
The DraftKings Michigan fine isn’t the first time we’ve heard of delayed cash outs.
In 2021, the New Jersey Division of Gaming Enforcement issued a letter warning online gambling platforms in the state about player withdrawal requests.
The DGE said that New Jersey rules “prohibit the practice of soliciting or incentivizing withdrawal requests to be rescinded or canceled by the patron.”
New Jersey regulators said they had received many consumer complaints about apparently arbitrary delays in processing their online gambling withdrawals.
Regulators said that the industry practice raised “concerns regarding player protection and responsible gaming.”
“Operators should clearly understand that the Division will take regulatory action and impose civil penalties whenever patrons are improperly encouraged or incentivized to rescind their withdrawal request,” the DGE concluded in its letter.
The DGE didn’t mention any operators by name.
Canceled Withdrawals a Warning Sign
There has been some academic research into the reversal of withdrawal requests by gamblers.
It could be a sign of addiction, according to a 2021 study from Nottingham Trent University in the U.K.
“Gamblers may try to protect themselves by withdrawing their winnings or the balance on the gambling account, in order not to spend all their money. Although this appears to be an attempt to control their gambling, if the withdrawal is cancelled in order to re-invest the money in gambling, such behaviour may be a potential indicator of loss of control.”
Related Content
- DraftKings Pennsylvania Lawsuit Alleges Addiction Harm To Users
- Class Action Lawsuit Filed Against DraftKings
- Inside Baltimore’s Sports Betting Lawsuit Against DraftKings, FanDuel
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