The United States has seen a rapid expansion of sports betting since the repeal of PASPA in 2018, with legal wagering now available in nearly 40 different states. Customers using licensed betting operators can rest assured that their data is protected and their funds are secure. However, a new practice of voiding payouts has emerged, leaving punters empty-handed and disappointed.
Licensed bookmakers have terms and conditions that protect them in cases of errors in pricing, allowing them to void bets as a form of “insurance.” However, a report by the Washington Post revealed that successful long-shot wagers are also being voided under this policy.
One such case involved Christopher Kozak, a bettor and financial trader, who placed successful long-shot wagers on NHL players not scoring, winning $127,420. Hard Rock Bet, operated by the Seminole Tribe, contacted Kozak to inform him that his wagers were voided due to an “obvious error,” and that he was only due a refund of the wagered sum.
Kozak was not happy with this decision and even complained to the Tennessee Sports Wagering Council. Hard Rock also attempted to renegotiate the odds, which Kozak saw as a “slap in the face.” The sportsbook did not provide specific details about the supposed error, leading to frustration for Kozak.
After reaching out to the Washington Post and the publication contacting Hard Rock, Kozak’s wagers were eventually paid in full, albeit two months after being initially voided. This case raised concerns about the practice of voiding bets by sports betting operators.
David Rebuck, the director of the Division of Gaming Enforcement in New Jersey, criticized errors related to pricing for sports wagers, stating that such errors must not occur.
In conclusion, the expansion of sports betting in the United States has brought about new challenges for both bettors and operators, with the practice of voiding payouts drawing scrutiny from regulators and bettors alike.