Inside Gaming: FanDuel Sportsbook to Pay Disputed $82K Bet After Glitch
This week's Inside Gaming reviews the roller coaster story involving a New Jersey sportsbook offering an incorrect price on an NFL wager, then after refusing to pay out winning tickets changing course. Also noted is a partnership involving a major Las Vegas sportsbook intended to carry its brand and services to other states.
Glitch Causes Erroneous In-Game Wagering at FanDuel Sportsbook
In late July we reported here about the new FanDuel-operated sportsbook opening at The Meadowlands Racetrack in East Rutherford, New Jersey, and how despite some early growing pains there had been decent traffic with nearly $3.5 million wagered in the first nine days of operation.
Then some bettors had experienced frustration after not being able to cash winning tickets following an extra-inning major league baseball game that concluded after the cages had closed. That followed some early adjustments having to be made after the sportsbook had first opened when bettors complained about exorbitantly high (and non-industry standard) vig on MLB games.
This week another story involving the FanDuel sportsbook captured the industry's attention.
Last Sunday, the Denver Broncos trailed the Oakland Raiders 19-17 with less than a minute to go in the game, and the sportsbook's in-game wagering offered bettors +340 (i.e., $100 to win $340) for Denver to win. Within a couple of plays, the Broncos completed a pass to move within field goal position with just 26 seconds left, thereby greatly improving their chances to win with a game-ending field goal.
As FanDuel would explain afterwards, an error occurred resulting in a momentary "pricing error" affecting in-game wagering. While the bet for Denver to win had become -600 (i.e., $600 to win $100), the sportsbook instead was offering bettors the chance to bet on a Broncos victory at +75000 — that is, $100 to win $75,000 or 750-to-1.
The erroneous price was available for just 18 seconds before being corrected, but that was time enough for 12 bettors to make the wager at the astronomical (and obviously absurd) price. Denver did kick that winning field goal to come out on top 20-19, but when those who had made the bet went to collect their winnings they were told their tickets would not be honored.
One of the bettors, Anthony Prince, spoke with News12 New Jersey about having bet $110 at +75000, meaning he would have been due more than $82,000. But Prince was told by a FanDuel employee there had been a technical glitch and the sportsbook was not obligated to pay out tickets when such glitches occurred.
A statement from FanDuel afterwards explained how "a small number of bets were made at the erroneous price over an 18-second period," and that they had instead "honored all such bets on the Broncos to win the game at the accurate market price in accordance with our house rules and industry practice, which specifically address such obvious pricing errors."
According Prince, he was also offered $500 and tickets to a New York Giants game, which he declined accepting.
While Prince indicated an intention to hire an attorney, the story of the glitch and FanDuel's decision not to make the large payout earned national attention, being reported on by Forbes, ESPN, NPR, Business Insider, and even Golf Digest. As the issue was debated among sports bettors and other observers, the New Jersey Division of Gaming Enforcement began an investigation into the matter to determine FanDuel's liability.
Like an NFL game in which the lead changes hands multiple times as the clock runs out, the story took another turn Thursday afternoon when FanDuel announced it would honor Prince's ticket and pay him the $82K-plus, as well as honor tickets from other bettors who managed to place the bet on Denver to win at the incorrect price.
"Above all else, sports betting is supposed to be fun," said FanDuel in a statement yesterday shared via the AP. Referencing the newness of sports betting in New Jersey which was only made legal in June and the fact that "a lot of our customers are new to sports betting and... not familiar" with industry rules and how such pricing errors are handled, FanDuel declared "this one's on the house."
"We are paying out these erroneous tickets and wish the lucky customers well," said FanDuel. "Going forward, we are working with the New Jersey Division of Gaming Enforcement to improve our processes and procedures."
A spokesperson for the NJDGE said the agency was "encouraged by FanDuel's actions" and echoed the intention to work with the FanDuel and other operators "to ensure the implementation of industry-wide best practices."
Riding the wave of positive publicity, FanDuel announced it will additionally give away another $82,000 this weekend by randomly awarding $1,000 to 82 customers.
Westgate SuperBook to Go National, Partners with Paragon
Speaking of sports betting and sportsbooks, the Westgate Las Vegas SuperBook — the largest in Nevada — has gained national prominence over recent years in part due to its increasingly popular NFL season-long SuperContest.
On Wednesday the SuperBook announced an intention to expand its gaming platform across the U.S. via a partnership between Westgate Resorts and Paragon Gaming. The partnership will enable the SuperBook to make itself available as a "white label" sportsbook provider in new markets, including states that have recently introduced sports betting following the May ruling by the U.S. Supreme Court lifting the earlier federal prohibition.
Based in Las Vegas, casino management company Paragon Gaming has operated the Westgate Las Vegas Resort and Casino since 2015.
"This is the natural next step in the evolution of our industry," says Jay Kornegay, Executive VP of Race & Sports Book Operations at the SuperBook. "We have maintained the highest levels of technology and service in a highly-regulated industry. We have written the playbook, and now we will put it in action across the national field."
Paragon Gaming COO Rob Oseland notes how "In a way, we're decoupling the SuperBook brand from the Westgate so it can stand on its own in other markets and compete for market share," reports CDC Gaming.
The announcement did not include further details of the SuperBook's plans, noting only that "Future SuperBook sites, turnkey sportsbook products, and gaming partners will be announced at later dates."
