Multiple Violations Lead to Massive Fine for bet365 in New Jersey

Article by : Erik Gibbs Aug 8, 2024

• 
• 

Sports betting and iGaming operator Bet365 has been ordered by the New Jersey Division of Gaming Enforcement (DGE) to pay over $500,000 to its customers. The directive came after the DGE identified that Bet365 had improperly altered the odds on 199 winning wagers between December 2020 and November 2022, resulting in bettors receiving payouts based on the revised odds rather than the original ones.

The total amount owed by Bet365, as specified in a letter sent by the DGE on July 22, is $519,323.32. This situation arose because the operator changed the odds on certain wagers, citing “obvious errors” without seeking the necessary approval from the DGE. Consequently, the regulator insisted that bettors be compensated according to the original odds, which were more favorable than the revised ones.

This decision underscores the importance of regulatory compliance within New Jersey’s gaming framework. The DGE’s interim director, Mary Jo Flaherty, expressed significant displeasure over the volume and seriousness of these violations. She emphasized that such repeated infractions are unacceptable within the state’s stringent regulatory environment. Flaherty’s letter made it clear that any future breaches of this nature would lead to more severe disciplinary actions.

The issue of “obvious errors” in odds adjustments varies across different states, with The Garden State having particularly stringent regulations. Unlike some other jurisdictions, New Jersey requires betting operators to obtain regulatory approval before altering odds due to obvious errors. This requirement aims to protect bettors and ensure fair play, but it appears to have caught Bet365 off guard, leading to multiple violations over the specified period.

Bet365 had a 10-day window from the date of the letter to rectify the situation and pay the owed amount to the affected bettors. Given the stern warning from the DGE, it is likely that the operator has complied to avoid further repercussions. This incident serves as a stark reminder to all operators about the importance of adhering to state-specific regulations and maintaining transparent operations to uphold the integrity of the gaming industry.

The New Jersey regulator’s decision highlights the critical role of oversight in the sports betting industry. Ensuring that operators follow the rules not only protects consumers but also maintains the credibility and reliability of the gaming market.

For Bet365, this incident might lead to a reassessment of its internal processes to prevent similar issues in the future. It also underscores the need for operators to stay informed about and compliant with the regulations of each market they operate in, as state laws can significantly differ.