Pricing Errors in Sports Bets Lead to Voided Wins and Concerns

Since 2018, the landscape of sports betting has changed drastically across the United States. The repeal of PASPA, which opened up opportunities for legal wagering, has allowed customers in almost 40 different states to participate in the activity. Customers using licensed betting operators can rest assured that their data is secure, and they can securely deposit funds and withdraw winnings. However, a concerning trend has emerged involving the voiding of payouts, leaving bettors empty-handed and disappointed.

Similar to iGaming activities, licensed bookmakers have terms and conditions in place to protect themselves. One such clause enables bookmakers to void bets in cases of errors in pricing, essentially serving as an “insurance plan.”

A recent report from the Washington Post highlighted a case where a Hard Rock Bet customer had almost $130,000 voided after three successful wagers on hockey. Christopher Kozak, an experienced bettor and financial trader, was shocked when his long-shot bets resulted in a significant win, only to have the bookmaker void them.

The Seminole Tribe, which operates Hard Rock Bet, contacted Kozak shortly after his win to inform him that his wagers were voided due to an “obvious error,” and that he was only entitled to a refund of the wagered sum. Kozak was understandably upset and lodged a complaint with the Tennessee Sports Wagering Council. He also accused Hard Rock of attempting to renegotiate the odds, which he found insulting.

Adding to the frustration was the lack of transparency from the sportsbook regarding the supposed error. Even after reaching out to the Washington Post, Hard Rock remained tight-lipped about the situation. It wasn’t until two months later that Kozak’s wagers were finally paid in full, raising 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, emphasizing that such mistakes should not occur.

The case serves as a reminder of the potential risks that bettors face when engaging in sports betting, despite the expansion of legal wagering across the country. Customers should remain vigilant and informed about the terms and conditions of their chosen betting operators to avoid potential disputes over voided payouts.