The New Jersey Department of Gaming Enforcement (DGE) recently took action against bet365, ordering them to pay over half a million dollars to in-state bettors. The reason? Bet365 had been secretly adjusting odds on various sporting events over two years without informing the DGE.
According to the DGE, bet365 claimed that its house rules allow the sportsbook to adjust odds in case of human or technical errors. However, the DGE pointed out that bet365 failed to follow a critical requirement: their house rules, approved by the division, specify that any odds changes must be reviewed by the DGE first. After accepting wagers based on incorrect pricing, bet365 was obligated to inform the DGE and seek permission to modify or void those bets.
“Prolonged and Unacceptable Course of Conduct”
“In a ruling issued by the DGE, Interim Director Mary Jo Flaherty and Deputy Director Louis S. Rogacki concluded that bet365’s violations demonstrate a ‘prolonged and unacceptable course of conduct.’ Flaherty’s written ruling highlighted that these failures affected both bet365’s ability to conduct online gaming and the integrity of its operational systems.
The misleading wagering information, relied upon by patrons, ultimately led to incorrect payouts. Notably, bet365 overlooked the requirement that wagers cannot be voided without prior Division approval, as specified in Division regulation N.J.A.C. 13:69N-1.11(d).”
What Games Were Affected by the Changing Odds?
Officially bet365 was ordered to pay out more than $519,000 to 199 New Jersey sports betting customers.
The audit revealed that bet365 had altered odds for a significant number of bets across 13 sports events between December 2020 and November 2022. This included 21 wagers on a New England Patriots vs. New York Jets NFL game and 63 bets on an NCAA basketball game between Brigham Young University and the University of Oregon. The DGE’s ruling emphasizes that operators must notify the regulator before voiding any bets.
Not the First Incident in the Garden State
In April 2023, Bet365 faced a similar situation in New Jersey. The sports betting operator accepted 101 bets from 47 customers on an NBA game between the New York Knicks and Cleveland Cavaliers. Bet365 claimed they had offered incorrect odds for the event.
The New Jersey Division of Gaming Enforcement (DGE) reported that Bet365 once again failed to comply with regulations. Despite the initial refusal, the operator eventually paid out $13,776.25 to seven winning wagers based on the originally posted odds.
In November 2023, the DGE rejected a request from DraftKings to void 215 winning bets made on an incorrect total advertised for an October NBA game, mandating that the operator pay them out in full. New Jersey is one of the few states that generally requires operators to honor all bets placed at any odds, even if they are offered with “obvious errors.”
It just goes to show that regulators appear to be watching the moves sports operators make to ensure gameplay is fair for everyone.
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