DGE Order bet365 to Compensate Bettors for Unapproved Odds Changes
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Error Led to Change in Odds
The DGE discovered that between 2020 and 2022, bet365 “unilaterally revised odds for a significant number of wagers”. A routine audit revealed that the operator had adjusted odds for 13 sports events, citing an error in its house rules. These changes affected concluded bets. bet365 stated that incorrect odds provided by partners necessitated these revisions and believed they were justified.
However, the DGE stressed that operators are prohibited from voiding wagers or changing odds without prior approval. Consequently, the New Jersey Division of Gaming Enforcement instructed bet365 to honor all payouts affected by the revisions.
In total, bet365 was required to pay $519,323.32 to 199 patron accounts within 10 days of July 22, the date the order was issued.
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Odds Changes Must Be Pre-Approved
The affected events included a 2021 NCAA basketball game between BYU and Oregon, where bet365 revised the odds post-event, impacting 59 winning bets. The DGE pointed out that while bet365’s rules allow for revising obviously erroneous odds, such changes must be pre-approved by the regulator. bet365’s failure to do so was deemed unacceptable by DGE’s interim director, Mary Jo Flaherty.
Flaherty noted that such failures “are problematic as to bet365’s business ability to conduct online gaming and the integrity and reliability of its operational systems.” She further stated that the operator’s actions misled customers, resulting in incorrect payouts to nearly 200 people.
This directive is consistent with New Jersey’s approach to ensuring operators honor all bets, even those made in error. The DGE has previously enforced similar actions on other major operators, such as DraftKings, to pay out voided bets.
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