Kyle Ross-USA TODAY Sports
- The New Division of Gaming Enforcement has ordered bet365 pay out more than $519,000 to New Jersey sports betting customers
- The DGE reported that bet365 revised odds on 199 bets due to what they claimed were “obvious errors”
- The DGE does not allow any operator to revise or void any wager without prior permission to do so
The New Jersey Division of Gaming Enforcement is requiring bet365 pay out more than $519,000 to 199 New Jersey sports betting customers after it was found the sports betting operator revised odds to already concluded bets due that were placed with “obvious errors.”
The New Jersey Division of Gaming Enforcement (DGE) sent a letter to bet365 on July 22, 2024, asking the payouts occur within 10 days of its receipt. The DGE today published its course of action on its official website.
Bet365 reportedly accepted bets on what they claimed were “incorrect odds” for 13 sporting events in from December 2020 through November 2022.
Bet365 Required to Honor Original Bets
New Jersey stands out as one of the few states in the country that typically requires operators to honor all bets taken at any odds, even if they’re offered with “obvious errors.” In Nov. 2023, the DGE denied a DraftKings request to void 215 winning bets on an incorrect total advertised for an October NBA game, requiring the operator pay them out in full.
Most other state gaming regulators will allow operators to void bets that are offered with “obvious errors.”
During a routine audit conducted by the DGE in April 2022, it was determined that bet365 “unilaterally revised odds for a significant number of wagers over an extended period of time” without division approval. The DGE ordered bet365 pay out a total of $519,323.32 to 199 user accounts.
In the vast majority of incidents, the winning bets had already been paid out to New Jersey customers.
The incorrect odds were offered for 13 sporting events from December 2020 through November 2022. The event with the highest amount of bets taken was a Nov. 17, 2021, NCAA basketball game between BYU and Oregon. The operator accepted 63 bets from 18 customers, of which 59 bets won. The operator revised the odds for all winning wagers on the event after being paid out.
The rest of the bets and incorrect markets can be viewed here.
Even though bet365’s approved New Jersey house rules state the operator is allowed to revise odds for an event if posted with an “obvious error,” the DGE says it can only do so with its approval first.
“bet365 failed, in all instances, to recognize that although bet365’s House Rules were approved by the Division, it was with an express statement and caveat that bet365 was prohibited from voiding any wager without prior Division approval, as is the standard course in Division approval of House Rules and as set forth in Division regulation N.J.A.C. 13:69N-1.11(d),” DGE Interim Director Mary Jo Flaherty wrote in a letter to bet365.
According to the DGE, bet365’s internal software failed, and coupled with its manual trading errors, caused its system to be unable to ensure the accuracy of its data.
Flaherty described the operator’s actions as both “problematic” and “unacceptable.”
“These failures are both problematic as to bet365’s business ability to conduct online gaming and the integrity and reliability of its operational systems and, therefore, unacceptable as they resulted in misleading wagering information that was relied upon by its patrons and ultimately lead to incorrect payouts for numerous patrons,” Flaherty wrote.
A request for comment from bet365 was not returned. Sports Betting Dime will update the story if bet365 comments on the matter.
Not First New Jersey Incident
Bet365 was involved in a similar incident in the Garden State in April 2023. According to the DGE, bet365 accepted 101 bets from 47 New Jersey customers on an NBA game between the New York Knicks and Cleveland Cavaliers. The operator claimed they offered the event with incorrect odds.
The DGE reported that bet365 again “failed to comply with NJAC 13:69D-2.3 and NJAC 13:69N-1.9(q).” Seven of the 101 bets were winners on player specific prop markets, which the operator initially refused to pay out at the originally posted odds.
However, the operator later confirmed that it paid the seven winning wagers a total of $13,776.25 based on the originally posted odds.
Rob covers all regulatory developments in online gambling. He specializes in US sports betting news along with casino regulation news as one of the most trusted sources in the country.
New Jersey’s Division of Gaming Enforcement recently ruled that online sports betting operator bet365 must pay out a total of $519,000 to customers who were affected by a technical glitch on the platform. The glitch occurred during a two-week period in January, where some customers were able to place bets on games that had already started, resulting in potential losses for the company.
The Division of Gaming Enforcement conducted an investigation into the matter and found that bet365 had violated state regulations by allowing customers to place bets on events that had already begun. As a result, the company was ordered to refund all affected customers and pay a fine of $81,000.
This incident serves as a reminder of the importance of strict regulation and oversight in the rapidly growing online sports betting industry. With more and more states legalizing sports betting, it is crucial that operators adhere to the rules and regulations set forth by state authorities to ensure fair and transparent gaming experiences for customers.
In response to the ruling, bet365 has issued an apology to its customers and stated that they are committed to upholding the highest standards of integrity and compliance in their operations. The company has also implemented additional measures to prevent similar incidents from occurring in the future.
Overall, this case highlights the need for continued vigilance and enforcement in the sports betting industry to protect consumers and maintain the integrity of the market. As more states continue to legalize sports betting, it is essential that operators prioritize compliance and transparency to ensure a safe and enjoyable experience for all customers.
