FanDuel To Payout Erroneous BetsJake Cooper | 01 Oct 2018
After initially refusing to pay out an $82000 bet, daily fantasy sportsbetting site FanDuel has decided to honour the winning ticket, despite the obvious odds error. The bet, which was placed on the Broncos Raider game, offered 750/1 odds.
The sportsbook has said that sports betting is supposed to be fun, and since certain clients did not enjoy their experience, they will pay all the bets placed.
What Are The Odds?
Punter Anthony Prince placed a $110 on the then-losing Denver Broncos to win in the final minutes of the game. The Broncos delivered, kicking a field goal and winning with a 20-9 final score.
Prince went to cash in his bet, only to be refused payment by the FanDuel personnel. The staff said that the odds were an obvious error and therefore they were not required to honour the ticket. Instead, the Newark punter was offered $500 cash and tickets to three New York Giants games, which he refused. If FanDuel had listed the correct odds at -600, Prince would have won only $18.35. He went on to file a complaint with the Jersey Division of Gaming.
Honouring the Bet
In a change of heart, FanDuel has chosen to settle all the bets placed within the timespan that these odds were offered. They will also pay out an additional $82000 to selected customers, who will each receive a $1000 deposit bonus.
Company representatives were compelled to pay out the bets after consulting with the New Jersey Division of Gaming. The company line is that its decision to pay out the bets is because it believes sports betting should be an enjoyable experience at all times. However, New Jersey regulations state that no operator may unilaterally decide not to honour a bet and must get approval.
Errors in odds are not new to the industry and are generally accepted as a gambling risk. Known as palpable errors or ‘palps’ most company policies state that should an error occur, the punter will receive a payout at the correct odds at the time of placing the bet.
This is already a widely accepted precedent in the more mature markets such as the United Kingdom. However, the New Jersey market only opened in June 2018.
Going forward, the NJDG plans to work with licensed companies to create and implement a set of industry best practices. The NJDG has also stated that they were encouraged by FanDuel’s decision to pay out the bets to their clients.