New Jersey regulator orders Bet365 to pay $519,000 for unauthorized odds changes
Date: 2024-08-08 Author: Robert Beloved Categories: EVENTS
Unlike other states, New Jersey requires operators to obtain approval to change odds. In this case, Bet365 was ordered to pay players rather than fine the company. Bookmakers typically pay fines for breaking rules in New Jersey and other states.
Bet365 is one of the top five operators in New Jersey by gambling revenue.
DGE stresses need for approval of changes
According to a letter dated July 22, Bet365 changed the odds on events after they had been published.
The DGE letter said Bet365 believed it could “unilaterally revise the odds already offered for bets on these events as they had been published with a clear error.” The DGE disagreed.
“Bet365 failed to consider that although its internal rules were approved by the Authority, this was with an explicit statement and caveat that Bet365 was prohibited from voiding any bets without prior Authority approval.”
Technology issues as root cause
The DGE pointed to technology issues as the root of the problem. It also expressed concern that such issues were undermining the integrity of Bet365.
“A fault in Bet365’s internal software, coupled with its manual trading errors, resulted in the system’s inability to ensure the accuracy of its data,” wrote interim director Mary Jo Flaherty.
“These failures are problematic both in terms of Bet365’s ability to operate online gaming and the integrity and reliability of its operating systems. They resulted in misleading betting information that customers relied on and ultimately incorrect payouts for numerous customers.”
The DGE gave Bet365 20 days from the date of the letter to submit a plan to rectify the issues. Flaherty wrote that “such breaches involving unilateral voiding of bets will not be tolerated any longer.”
Conclusion
This situation highlights the importance of operators adhering to established policies and procedures, especially in a growing online gambling market. Going forward, Bet365 must ensure that its systems are more robust and compliant with regulatory requirements to avoid similar breaches.
