Tennessee resident indicted on online gaming account fraud charges
Multi-agency investigation finds Nolensville man created fraudulent accounts using DraftKings
Tennessee officials have confirmed the indictment and arrest of a Nolensville resident on charges of identity theft in a scheme which utilized the DraftKings online gaming platform.
The man, who has been confirmed as Bruce Orr was found to have created a large number of fake accounts associated with an address in Nolansville, Tennessee.
It follows an investigation instigated by the Tennessee Bureau of Investigation (TBI) at the request of the 21st Judicial District Attorney General’s office in September 2022.
Officials from the TBI engaged with representatives of the Tennessee Sports Wagering Advisory Counsel, which oversees gambling regulation in the state.
On March 13, a grand jury in the Williamson County Court returned indictments charging Orr with eight separate counts of identity theft. He has since been arrested and is in custody at the Williamson County Jail on a $35,000 bond.
DraftKings cybersecurity came under scrutiny in November, when hackers utilized a so-called ‘credential stuffing’ attack to expose data belonging to more than 68,000 sportsbook account holders across the US.
Credential stuffing attacks are cyberattacks where hackers use login credentials obtained from a third-party source to gain access to user accounts. In most cases, they occur when individuals use the same login credentials on multiple websites.
Reports first began to surface that DraftKings had been the subject of a cyberattack on November 22, with the company’s stock dropping by almost 9% following the revelations.
The operator later confirmed that almost $300,000 in customer funds had been taken by hackers.
Last week, legislators in Tennessee tabled a bill which if approved would see the amendment of local tax rates on gambling, taxing operators on handle rather than revenue.
At present, local sportsbook operators are taxed at a rate of 20% of their gross gambling revenue, however, house bill 1362 includes language which would see operators taxed at 1.85% of their respective handle, which is an amount usually larger than GGR.
The bill, which has already gone through committee stage (where it was amended) to include the taxation switch is due to be considered by members of the House Finance, Ways, and Means Subcommittee later today.
A separate senate bill, SB 475 which is similar in nature to the house bill has already been referred to the Senate Finance, Ways, and Means Committee for consideration on March 28.
SB 475 would tax operator handle at a rate of 2%.