Fanduel To Make Good On Flawed Odds Offers (Update)
Following an investigation and a discussion with the New Jersey regulator, sports betting company makes full pay-outs
FanDuel announced Thursday that it is to pay out the full amounts on 12 New Jersey football betting tickets which contained flawed and mistakenly inflated good odds on the Broncos-Oakland Raiders game.
The twelve tickets represented a small but savvy segment of online and land bettors who initially had their winnings frozen pending investigation of an apparent operational glitch and raised hell on social and industry media over the past week.
On one ticket alone – a $110 bet made at the Meadowlands facility seconds before the game ended in victory for the Broncos – the player scored $82,610 on odds of -75,000 rather than the $18.33 profit he would have made at the correct odds of minus-600 (see previous InfoPowa report).
Following an investigation and a discussion with the New Jersey Division of Gaming Enforcement, FanDuel released the winnings to the affected players Thursday along with a press statement which advised:
“Above all else, sports betting is supposed to be fun. As a result of a pricing error this weekend, it wasn’t for some of our customers.”
The statement went on to explain how such “astronomically high odds could only have been a thankfully rare pricing error,” but acknowledged that many of its new customers may not be familiar with standard industry T&C rules explaining that fraud or technical malfunctions can render transactions null and avoid.
With some definite PR flavouring from its parent Paddy Power Betfair group, FanDuel went on to say that it did not want an 18-second error to define the FanDuel betting experience, advising that “this one is on the house” and wishing the 12 punters well.
The Paddy Power influence was also there in a special offer turning the debacle into an opportunity for the house by offering $1,000 to 82 randomly selected accounts of FanDuel punters.
More importantly and seriously, the company assured readers that it is working closely with the Division of Gaming Enforcement to “improve our processes and procedures” and better familiarise sports bettors on standard rules and how they are usually applied.
Fanduel Warns Partners Regarding Illegal Gambling Activity
Online sports betting company will take appropriate steps to stamp out illegal activity
New Jersey-licensed FanDuel Sportsbook in the Paddy Power Betfair group has contacted affiliate and other partners to warn them that it will not tolerate illegal activity and is prepared to work with the Division of Gaming Enforcement to take appropriate action to curtail it.
The advisory reads:
“Please be advised that FanDuel considers the promotion of offshore gambling websites as promotion of illegal activities. As such, FanDuel will take steps to monitor your site to ensure it complies with FanDuel’s terms and conditions, and will take appropriate actions including, but not limited to, terminating your participation in the FanDuel Affiliate Program if you fail to comply with the terms and conditions.
“By continuing to participate in the FanDuel Affiliate Program, you represent and warrant that your site does not currently promote any illegal activities, including, but not limited to, offshore gambling.”
The DGE has shown on several occasions that it is not a passive regulator when it comes to warning and taking action against operators or partners who do not comply with its regulations, and the recent rise in sports betting advertising and promotion following the strike down of the PASPA by the US Supreme Court makes this an appropriate time to reinforce its warnings.
Marketing affiliates working with New Jersey operator licensees are themselves required to be licensed by the DGE.
Technology exists for operators and affiliates to ensure that their activities are licence compliant, and at least two operators in the New Jersey market – GVC and Kindred Group – deploy the Rightlander software, which scans affiliate websites, monitoring links to the customer websites and mentions of the company’s brands. It also searches for specific events or conditions as defined by the operator.
