Home > Legal & compliance > NJ regulator to probe FanDuel odds glitch

NJ regulator to probe FanDuel odds glitch

| By iGB Editorial Team
Operator refuses to pay out after glitch results in inflated odds being offered on NFL game

New Jersey’s gaming regulator has opened an investigation after FanDuel refused to pay out on bets that were placed while a computer glitch allowed inflated odds to be posted.

The 750-1 odds were available on Sunday’s NFL American football game between the Denver Broncos and LA Raiders for 18 seconds.

At least three people placed bets on the Broncos to win in the final seconds of their game. The Broncos won 20-19. One man claims he should have won $82,000 from a $110 bet placed at FanDuel's Meadowlands sports book parlour, but the company has insisted it is not liable to pay out as its house rules state that “a blatant or palpable error” can invalidate a successful bet.

Just two months after taking its first sports bets, FanDuel now faces a probe by the New Jersey authorities. New Jersey Division of Gaming Enforcement (NJDGE) director David Rebuck told the Associated Press that the matter is under investigation. He says the organisation is not only looking at whether the bet should be paid out, but “just as importantly, how it occurred, given internal controls exist to prevent such an error.”

In a statement, FanDuel said: “The wager in question involved an obvious pricing error inadvertently generated by our in-game pricing system.

“A small number of bets were made at the erroneous price over an 18 second period.  We 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. We have reached out to all impacted customers and apologised for the error.”

Former Senator Ray Lesniak said: “It's a tough circumstance, but it happens. It happens in business. This was an obvious error, somebody took advantage of it… but an obvious error is covered by the rules that unfortunately, they are not going to be liable and I don't believe they should.”

FanDuel went live with its brick-and-mortar sportsbook at Meadowlands Racetrack on July 14, with International Game Technology selected to serve as the operator’s sports betting platform provider in New Jersey.

Last month, FanDuel told iGamingBusiness.com that the operator was “very pleased” with the first month of the company’s Sportsbook in New Jersey.

Subscribe to the iGaming newsletter