Updated 7:40 PM GMT+1, August 7, 2024
ATLANTIC CITY, N.J. (AP) — Online gambling company bet365 has been ordered to refund more than half a million dollars to customers who received less than their entitled winnings after the company unilaterally changed the odds during payouts, according to state gambling regulators.
The New Jersey Division of Gaming Enforcement mandated the British company to reimburse over $519,000 to 199 customers who were shortchanged. This action followed instances where bet365 altered the odds on which customers had placed and won their bets, then paid out less than under the original odds.
bet365 cited “obvious error” as the reason for changing the odds, according to their report to New Jersey regulators. However, the acting head of the enforcement division emphasized that approval from the agency is required before any company can void or alter a payout. Mary Jo Flaherty, interim director of the enforcement division, criticized the company’s actions as “a prolonged and unacceptable course of conduct.”
“These types of multiple and serious violations cannot be tolerated in the New Jersey gaming regulatory system,” Flaherty wrote in a July 22 letter to bet365. She made it clear that no further violations involving the unilateral voiding of wagers would be accepted.
The company did not contest the order, which was made public on Friday, and declined to comment through a spokesperson.
State regulators reported that bet365 independently changed the odds on various events from 2020 to 2023, impacting the payouts for winning bets. These events included a Christmas Day table tennis match in 2020, along with NFL games, college basketball, mixed martial arts, and the Masters golf tournament in the following years.
In each scenario, customers who placed bets based on certain odds were paid out on less favorable odds. The state contended that bet365 justified its actions by claiming a right to change the odds due to “obvious error.” However, as an authorized sports betting provider in New Jersey, the company was purportedly required to seek the division’s approval before making any changes to wagers.
Flaherty described these discrepancies as “problematic” and indicative of bet365’s inadequacy in managing online gambling operations, questioning the integrity and reliability of its systems.
Additionally, the company has been directed to submit a comprehensive report outlining steps taken to identify and rectify any failures in its internal software systems, human errors, and measures to ensure the accuracy of its data feeds.
