Bet365 was ordered to refund more than $500,000 to winning bettors in New Jersey after paying them out at worse odds for nearly three years.
In a July letter addressed to the company’s legal counsel, the New Jersey Division of Gaming Enforcement gave bet365 until August 1 to pay $519,323.32 to 199 New Jersey customers. An audit revealed that the company “unilaterally revised odds for a significant number of wagers over an extended period of time.”
Neither bet365 nor the NJDGE immediately responded to an inquiry about whether customers have been paid back.
Odds an ‘obvious error’: bet365
In the letter, the company defended its actions, stating that the odds posted were “an obvious error,” a situation where most states allow books to adjust payouts. However, New Jersey requires sportsbooks to obtain approval from the regulator first, which bet365 did not do.
“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 is set forth in Division regulation N.J.A.C. 13:169N-1.11(d),” the NDJGE said in the letter.
“Moreover as a sports wagering provider participating in New Jersey’s gaming industry, bet365 is charged with knowledge of the gaming laws, including the Division’s regulation barring unilateral voiding of wagers by operators without the express authorization of the Division.
13 events impacted
It is unclear where the errors originated, as the 13 affected bets involved a range of sports, leagues, and wager types over a long period of time.
The associated events span from December 2020 to April 2023. They included markets including table tennis, NFL football, college basketball futures and golf.
Along with the payouts, bet365 must submit a full report of efforts to identify and rectify failures of its internal software systems and manual trading errors, and ensure the accuracy of its data feed by August 11.
