New Jersey Orders bet365 to Pay Back $519K in Voided Wagers

The New Jersey Division of Gaming Enforcement (DGE) is requiring bet365 to pay out more than $519,000 to 199 New Jersey sports betting customers after it was found the sports betting operator revised odds to already concluded bets due that were placed with “obvious errors.”

New Jersey Division of Gaming Enforcement says bet365 failed to comply with the New Jersey Administrative Code

According to the DGE’s letter sent out to bet365 on July 22, the company failed to comply with N.J.A.C. 13:69D-2.3 and N.J.A.C. 13:69N1.9(q) and accepted wagers on what the sports betting operator claimed were “incorrect odds.”

N.J.A.C. 13:69D-2.3 states that a “casino licensee shall ensure all software utilized works as intended and functions properly in compliance with the Division’s rules prior to installation.”

N.J.A.C. 13:69N1.9(q) also requires licensees to have “controls in place to review the accuracy and timeliness of any data feeds used to offer or settle wagers.”

During a routine audit conducted by the DGE in April 2022, it was determined that bet365 “unilaterally revised odds for a significant number of wagers over an extended period of time” without division approval.

Bet365 reportedly accepted bets for 13 sporting events on what they claimed were “incorrect odds” from December 2020 through November 2022. The event with the highest amount of bets taken was at an NCAA basketball game between BYU and Oregon on Nov. 17, 2021.

Bet365 operator accepted 63 bets from 18 customers, of which 59 bets won. The operator revised the odds for all winning wagers on the event after being paid out.

Bet365 must pay the $519,323.32 within 10 days of the date of the letter with confirmation of payment provided

Two NFL games were mentioned in the letter: New York Jets vs. New England Patriots on Dec. 30, 2020, and Tennessee Titans vs. Green Bay Packers on Nov. 18, 2022.

In fact, the aggregate total to be paid is $519,323.32. The amount is required to be paid within 10 days of the date of the letter with confirmation of payment provided to the undersigned.

Furthermore, the letter also reads “any additional violations of N.J.A.C. 13:69D-2.3 and N.J.A.C. 13:69N1.9(q), no matter how de minimis, will result in further disciplinary action by the Division.”

According to the DGE, bet365’s internal software failed, and coupled with its manual trading errors, caused its system to be unable to ensure the accuracy of its data.

Bet365 failed to comply with the N.J.A.C. in April 2023

“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 set forth in Division regulation N.J.A.C. 13:69N-1.11(d),” DGE Interim Director Mary Jo Flaherty wrote in the letter to bet365.

Additionally, bet365 was involved in a similar incident in New Jersey in April 2023. According to the DGE, bet365 accepted 101 bets from 47 New Jersey customers on an NBA game. It was a matchup between the New York Knicks and Cleveland Cavaliers.

The operator claimed they offered the event with incorrect odds. The DGE reported that bet365 again “failed to comply with N.J.A.C. 13:69D-2.3 and N.J.A.C. 13:69N-1.9(q).”

Seven of the 101 bets were winners on player specific prop markets. The operator initially refused to pay out the bets at the originally posted odds. However, the operator later confirmed that it paid the seven winning wagers a total of $13,776.25.

The rest of the bets and incorrect markets can be viewed in the letter.