New Jersey Regulator Addresses Early Fanduel Sports Betting Flaw
Much publicised in-play betting coup leads to a tightening of regulations
A discussion panel at this week’s Global Gaming Expo has given more insight into the consequences of the in-play betting ‘ridiculous’ odds flaw that allowed 12 sharp New Jersey punters to score significant wins – in one case of $82,000 – on a last second win in a US National Football League game earlier this year.
InfoPowa readers will recall that one bettor placed his wager at the Meadowlands Racetrack, and 11 others who made online bets were initially rebuffed when they sought payment from FanDuel Sports in the Paddy Power Betfair group.
After something of a social media storm, a deeper investigation, and an discussion with the regulatory New Jersey Division of Gaming Enforcement all the players were paid out.
A media outlet raised the issue again at a G2E panel on which chief New Jersey regulator David Rebuck was sitting, and was told that the major odds flaw in the dying moments of the Broncos-Raiders game was regarded by the regulator as an unfortunate hiccup in the nascent sports betting sector, but one from which lessons were learned.
Rebuck said that on deeper investigation there were at first concerns that there may have been a criminal conspiracy involved, but as the investigations developed it revealed that the flaw occurred due to the regulatory internal controls not working as intended.
Following the investigation the regulator and FanDuel-Paddy Power – Betfair discussed the issue in depth and owned the error, agreeing to strengthen internal controls and safeguards to prevent a recurrence…and paying out the punters.
Operators can look forward to notifications on the revised internal controls.
New Jersey Gambling Operators To Be Hit With Higher Taxes?
State governor Phil Murphy signs off on bill imposing a further 1.25 percent tax on gambling, effective from December this year
Land and online gambling operators in the booming New Jersey regulated market are bracing themselves for a tax hike following state governor Phil Murphy’s signing this week of a bill imposing an addition 1.25 percent tax on GGR in order to better finance New Jersey’s Casino Reinvestment Development Authority.
The new tax is set to kick in this December, raising the casino and pari-mutuel racetrack tax rate to 9.75 percent, and mobile bets to 14.25 percent.
The CRDA, which generates revenue primarily from Atlantic City casinos is tasked with economic and community development in Atlantic City by leveraging its available assets and revenues with private investment capital to support redevelopment projects throughout the city.
It is a controversial body which has been accused of not doing enough to attract and retain tourists to Atlantic City, a viewpoint that it appears the New Jersey Office of the State Auditor shares. It found that CRDA hadn’t deployed its funding appropriately and that a number of its projects had been mismanaged.
The CRDA has pushed back on the State Auditor’s opinion, with chair Robert Mulcahy III, blaming the state for the problems. He pointed out that the loss of the Investment Alternative Tax caused the agency to fall into chaos and made it impossible to organise its programs appropriately.
Earlier this week an op-ed in the Press of Atlantic City claimed: “The CRDA was created as a way for state officials to distribute some of the windfall of casino gambling with little transparency and public accountability.
“We hope the state’s criticisms of its dealings with Atlantic City, along with its continuing oversight of city government, are the start of it finally taking responsibility for redeveloping what has been its gambling cash cow for 40 years.”