FanDuel Sportsbook Pins NJ Sports Betting Palp On Tech Vendor

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New Jersey regulators chose bettor over book this week by requiring FanDuel Sportsbook to pay out on another pricing error.

FanDuel Sportsbook again found major media attention after a pricing issue, which was first reported by ESPN. And again, just like in 2018, one of the country’s biggest sportsbook operators has to pay up on a mistake.

The New Jersey Division of Gaming Enforcement (DGE) provided a statement about its rules Friday:

“DGE’s general policy is to not automatically void wagers when errors occur on the part of sports wagering operators. Although operators are free to request that those wagers be voided after patrons have placed bests, DGE treats those requests on a case-by-case basis.

“This practice encourages operators to have appropriate controls in place to avoid offering erroneous sports wagers, and they reinforce the integrity of sports wagering in New Jersey and confidence in the industry by the public.”

FanDuel pins error on third party

FanDuel issued a statement to the media following the NJ sports betting decision:

“Today, the [Division of Gaming Enforcement] ruled that a total of 10 online customers and one retail customer who placed wagers on erroneous soccer markets should be paid out after an investigation into a new bet type that was installed by a vendor incorrectly resulted in erroneous lines being made available to customers.

“FanDuel Sportsbook appreciates the DGE looking into this matter on our behalf. We regret that this error happened, believe it is important for customers to know that there is a review process for these issues, and thank the DGE for their collaboration in the matter.

“Customers impacted will receive their winnings in their online accounts immediately and our retail customer has been contacted to come into the Meadowlands to receive his winnings.”

The statement covers new ground in blaming the error on an outside vendor. That appears to differ from the 2018 situation.

Recapping FanDuel Sportsbook palp

The palpable error, a term used in Europe for an obvious pricing mistake, occurred a month ago with an MLS game, although soccer games from numerous leagues were in question.

FanDuel listed FC Cincinnati at +5 goals (-134) against Atlanta United. It remains unclear if the pricing error should have been shorter on the spread or the odds.

But the timing of this mistake was a bit different than the 2018 pricing mistake, which involved NFL betting. The 2018 mistake was up for mere seconds while this time, the line was listed for about a day, according to sources.

According to ESPN, the bets on the incorrect line would pay out more than $100,000.

No forced payouts in Indiana

New Jersey isn’t the only state where FanDuel Sportsbook took action on the incorrect line. But it is the only state where it’s being forced to pay the bets.

The Indiana Gaming Commission allows sportsbook operators to cancel bets on obvious pricing mistakes. According to Indiana’s sports wagering statute:

A certificate holder or vendor may not cancel a wager that has been accepted, except in the event of obvious error, at the certificate holder’s or vendor’s discretion.

But while the bets were successfully canceled, that doesn’t mean the issue is over. The Indiana Gaming Commission’s compliance committee is investigating the issue for potential action, Executive Director Sara Gonso Tait said.

Did FanDuel bring this on themselves?

Paying out on this New Jersey sports betting mistake might be FanDuel’s fault in the first place.

Back in 2018, FanDuel wasn’t necessarily forced to pay out on its mistake. It was after calls with the DGE – and a bunch of bad PR – that FanDuel paid on the bets.

FanDuel’s statement at the time suggested the sportsbook would work to educate bettors on palps in case it happened again:

“We want FanDuel to be a sportsbook for all bettors, and we want sports betting to be fun. So, this one’s on the house. We are paying out these erroneous tickets and wish the lucky customers well. Going forward, we are working with the New Jersey Division of Gaming Enforcement to improve our processes and procedures. We will also work with others in the industry on educating bettors on these and similar instances and how they work.”