NJ Regulator Orders Bet365 to Pay $500,000

NJ Regulator Orders Bet365 to Pay Over $500,000 for Unapproved Odds Changes

Bet365 has been hit with a hefty penalty by the New Jersey Division of Gaming Enforcement!

Discover how the sportsbook’s unapproved odds changes led to a $500,000 payout order.

Understand the implications of this regulatory action on the online gaming landscape.

Stay informed on the latest regulatory updates and ensure compliance in your gaming operations.

The New Jersey Division of Gaming Enforcement (NJDGE) has taken decisive action against bet365, ordering the prominent sportsbook to pay out over $500,000 to affected player accounts. This substantial payout comes after an investigation revealed that bet365 had altered the odds on numerous sporting events without prior approval from the regulator.

Investigation and Findings

The NJDGE’s routine audit and subsequent investigation uncovered that, between December 2020 and November 2022, bet365 had unilaterally revised the odds for a significant number of bets on 13 different sporting events. According to New Jersey gaming law, operators must notify the regulator before voiding a bet or altering odds, a requirement bet365 failed to meet.

Richard Schwartz, CEO of Rush Street Interactive, emphasized the importance of adhering to regulatory standards. “This incident underscores the critical need for transparency and compliance in the sports betting industry. Operators must ensure that all changes to betting conditions are fully approved to maintain the integrity of the market.”

Financial Penalties and Payouts

As a result of these findings, the NJDGE mandated that bet365 pay out wagers at the originally posted odds, rather than the revised ones. Consequently, bet365 was ordered to restore a total of $519,323.32 to 199 patron accounts. This significant financial penalty highlights the regulator’s commitment to protecting player interests and ensuring fair play.

Broader Regulatory Context

This action against bet365 is part of a broader regulatory crackdown by the NJDGE. In July, the Division fined DraftKings $100,000 for reporting inaccurate sports betting data. The errors involved overstating the amount wagered on parlay bets and understating other categories, which led to incorrect tax filings by Resorts Digital, the online arm of Resorts Casino, for December 2023 and January and February 2024.

Industry Implications

These enforcement actions underscore the importance of strict compliance with regulatory requirements in the rapidly growing online gaming and sports betting industry. Operators must ensure that they adhere to all regulations to avoid similar penalties and maintain their reputations.

Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA), commented on the need for rigorous regulatory frameworks. “The integrity of sports betting hinges on transparent and fair practices. Regulatory bodies play a crucial role in maintaining this integrity by enforcing strict compliance measures.”

Conclusion

The NJDGE’s order for bet365 to pay over $500,000 for unapproved odds changes serves as a stark reminder to all operators about the importance of regulatory compliance. As the online gaming industry continues to expand, adherence to regulatory standards will be essential in ensuring fair play and maintaining consumer trust.

Stay tuned for more updates on regulatory actions and industry developments to ensure your operations remain compliant and successful in this dynamic landscape.