Bet365 to reimburse half a million dollars to bettors

Garance Limouzy August 6, 2024

SiGMA news

Bet365 to reimburse half a million dollars to bettors

In New Jersey, Bet365 has been ordered to pay back over $519,000 to its customers by the Department of Gaming Enforcement (DGE) after the regulator discovered that the operator had been tampering with odds. Bet365 illegally revised odds on nearly 200 bets, for 13 sports events, over the course of 2 years.

During a routine audit in April 2022, the DGE discovered that Bet365 had “unilaterally revised odds for a significant number of wagers,” as stated by the regulator, which led to incorrect payouts for numerous customers. However, the operator is not allowed to alter any wager without prior division approval.

Bet365’s defence

Bet365 asserted that it had done nothing wrong by revising the odds that had already been offered on wagers for these events, arguing that they were posted due to an “obvious error.” The operator claimed that these wrong odds were caused by a failure in its internal software, combined with manual trading errors, which prevented its system from ensuring the accuracy of its data feeds. Bet365 maintained the revisions were not illegal as it is stated in the company’s House Rules that the operator will seek to ensure all odds displayed on the site are correct when published.

The DGE, however, ruled that operators have to ensure all software utilised works as intended and functions properly. It also reminded the operator that it should have sought the regulator’s approval before tampering with the winnings.

The DGE decision

Bet365 is required to honor all 199 winning wagers owed to patrons at the original odds, totaling over $519,000. Additionally, Bet365 must submit a comprehensive report to the DGE detailing its efforts to identify and address the failures in its internal software and manual trading processes.

For the time being, the division has decided not to pursue further regulatory action beyond this repayment order. However, the DGE has made it clear: “No further violations related to the unilateral voiding of wagers will be tolerated. Should any additional such violations by Bet365 occur, the division will take action to impose penalties.”