Bet365 Ordered to Pay $519,323.32 for 199 Bets to Customers in NJ

Written by:
C Costigan
Published on:
Aug/05/2024

Key Takeaways

  • New Jersey Division of Gaming Enforcement orders Bet365 to pay $519,323.32 to sports betting customers.
  • State regulator says company must pay 199 bets based on their original odds.
  • Dow down more than $1200 after opening Monday.
  • A report Friday showing hiring by U.S. employers slowed last month by much more than expected followed weak reports on manufacturing and construction.
  • Debate over DraftKings proposed surcharge on gamblers.
  • Kamala Harris close to making VP decision.
  • Mark Kelly falls to +1800 odds.

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Gambling News

Bet365 Ordered to Pay $519,323.32 for 199 to Customers in NJ

The New Jersey Division of Gaming Enforcement is requiring @bet365 pay out more than $519K to users after revising odds of winning bets they claim were placed with "obvious errors."

DGE described the actions as "problematic" and "unacceptable" in a letter.

Bet365 reportedly accepted bets on what they claimed were “incorrect odds” for 13 sporting events in from December 2020 through November 2022.  The discrepancies were found during a routine audit.  The specific event was a table tennis match between Vyacheslav Tsevetkov vs. Sergey Skotnikov.

The letter can be found here

Financial

Markets Take a Major Hit Monday Across the Globe

Japan's main index plunged more than 12%, its worst day since 1987 as investors in the U.S. prepared for a bloodbath on Monday with markets opening down more than a $1200.

S&P 500 futures were down 3.1% and Nasdaq futures are sinking 4.7%. Investors are fleeing the Big Tech names that until recently had powered the U.S. market higher: Apple fell more than 7% and Meta was down 6% in premarket trading. Chipmaker Nvidia tumbled 12.5%.

Futures for the Dow Jones Industrial Average fell 2.1%.

A report Friday showing hiring by U.S. employers slowed last month by much more than expected followed weak reports on manufacturing and construction and stoked fears the U.S. economy was finally bending under the pressure of high interest rates. Investors worldwide sold stocks and moved to the safety of bonds, pushing bond yields sharply lower.

The shakeup began just a couple of days after U.S. stock indexes had jumped to their best day in months after Federal Reserve Chair Jerome Powell set the stage for possible rate cuts to begin in September.

But after Friday’s jobs report, worries are rising the Fed may have kept its main interest rate at a two-decade high for too long, raising risks of a recession in the world’s largest economy. A rate cut would make it less expensive for U.S. households and companies to borrow money, but it could take time for the effects to boost the economy.

The price of Bitcoin and other cryptocurrencies were also taking a hit.  Bitcoin was down from a high of $68,000 July 27 to a low of $51,238 on Monday.

Gambling News

More Thoughts on the Proposed DraftKings Surcharge

Co-founder and CEO @EstablishTheRun, investing, ex pro poker, offered his take on the proposed DraftKings surcharge in four states with operating tax rates above 20%.

DraftKings Surcharge Thoughts:

I think the most important question all sports betting stakeholders, including bettors, should be asking is: "what happens in the long run if betting sites are paying 30-50% tax rates across the board?"

Background: Most state sports betting tax rates are in the 10 to 20% range. NY, PA, and IL (due to a recent tax increase) are now in the 40-50% range.

When large states like California and Texas, and even other new medium sized states like Georgia eventually authorize sports betting, there would be zero reason not to charge 30-50% rates. Why would they let other, similar markets capture less of the revenue than they could?

With this going on, currently legal states are going to look at these tax rates and wonder why they are leaving money on the table. This is what just happened in Illinois. This doesn't mean every state will have 30-50% tax rates, but tax rates will go up.

So what? The problem is that everyone but the largest companies are already unprofitable and/or struggling. Most bettors don't care about whether a sportsbook can make a profit. But they should.

Once it becomes clear that there is no profit for second and third tier books, more and more will cease to exist.

And with competition driven down to DK, FD, and a few other books in each state, I would expect to see one "compete on price" option (with a smaller menu, worse product, etc) and the rest of books target rec players with even higher prices than they do today.

The takeaway is that you are eventually going to get higher vig one way or another or not if tax rates are too high.

I think DK is attempting to front run this issue with a "surcharge," rather than letting market forces play out in the long term.

The worst part about all of this is that most bettors actually don't really care about price, which is why states can charge massive tax rates and why DK responded with a surcharge. I don't know if what DK is doing will work, but I actually give them credit for trying to do something about it.

I'm not saying people should support it, but I am saying that if you do care about price as a bettor, you should also care about tax rates.

I'd love to hear other points of view, where I'm wrong, etc. Thanks!

Our friend Blackmrprophet74, CPA offered the following response:

"$DKNG investors do not focus on #draftkings management poor decisions resulting in higher cost. Why is Robins billing the company for his private jet? The clothing line making money? Why is Robins paying the Cubs $100m over 10 years? why all the celebrities deals? @RadnorCapital."

More responses:

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Politics

Harris’ Whirlwind Search for Running Mate Enters Final Hours

It was unclear late Sunday after a day of interviews with finalists whether she had made a final decision, people familiar with the search said. The campaign plans to officially announce the choice through an online message to supporters before a rally in Philadelphia on Tuesday, where she’s expected to make her first appearance with her pick. Harris hopes to keep it under wraps “until as close to then as possible,” a person familiar with the search told CNN.

Closing Odds

Josh Shapiro -275

Tim Walz +210

Andy Beshear +1200

Mark Kelly +1800

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By  Chris Costigan

Chris founded Gambling911.com in 1999 and serves as the website's publisher.  He brings more than 3 decades of expertise related to the gambling and sports betting sector.  Creative talent is in Chris' genes, which he brings to the G911 website.  He comes from a showbiz family that includes Yankee Doodle Dandy George M. Cohan.  Chris is the grandson of artist John E. Costigan, whose work appears in the Smithsonian.  Chris' father was also in the news business and co-founded what is today the Union County Performing Arts Center.  Chris is a graduate of Kean University. 

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