The New Jersey Division of Gaming Enforcement (DGE) has mandated that bet365 pay more than $519,000 in back winnings to bettors. An audit by the DGE in April 2022 revealed that bet365 had unilaterally revised odds on 13 sporting events without prior approval from the state regulatory agency, resulting in reduced payouts on nearly 200 winning bets. This action violates New Jersey’s sports betting regulations, prompting the DGE to take regulatory action against the online sportsbook.
The audit disclosed that bet365 routinely adjusted odds in its favor on accepted bets, a practice that breaches state rules. The DGE’s statement outlined that the combined failure of bet365’s internal software and manual trading errors compromised the accuracy of its data feeds, eroding the integrity and reliability of its operational systems. Consequently, patrons were misled by incorrect wagering information, leading to inaccurate payouts.
Bet365, a British-based gambling company owned by the billionaire Coates family, operates its New Jersey sports betting through a partnership with Hard Rock Hotel & Casino Atlantic City. The online sportsbook defended its actions by pointing to situations it deemed “obvious error” incidents. Bet365 referred to its House Rules, which inform bettors of the right to correct “incorrect prices published due to human or technical error or issues outside our control.” However, the DGE clarified that while bet365’s House Rules were approved during its licensing application, state regulations necessitate notifying the regulatory authority before adjusting odds on any facilitated wager.
The DGE emphasized that once bet365 accepted wagers, even with odds considered incorrect, the sportsbook was obligated to seek permission from the Division to alter or void the wagers. In its order, the DGE directed bet365 to honor the 199 winning wagers in full based on the original odds, totaling $519,323.32. Bet365 was given a 10-day deadline from the date of the action letter on July 22 to make the payouts, which should now be completed. Additionally, the DGE instructed bet365 to submit a report detailing its efforts to identify and rectify its odds-making failures within 20 days of the letter.
DGE Deputy Director Louis Rogacki stated that multiple and serious violations cannot be tolerated within New Jersey’s gaming regulatory system. Calling bet365’s actions “totally unacceptable,” Rogacki issued a stern warning to the online sportsbook, indicating that no further violations related to the unilateral voiding of wagers would be tolerated, implicitly threatening the company’s New Jersey sports betting license.
