PPB’s FanDuel pays out on $82k palpable error bet
Operator pays up after conversations with local regulators but analysts suggest it is a one-off rather than a precedent
Paddy Power Betfair’s FanDuel brand has paid out multiple ‘palp’ bets in New Jersey following a consultation with the regulator and widespread media coverage.
The issue centred around one live bet in particular placed on the Broncos to win an NFL game when trailing by 2, but with the ball already in field goal range.
The bettor was offered odds of 750-1 on the Broncos to win, despite true odds of 1/6, according to FanDuel, reflecting a circa. 85% chance of the field goal going through.
FanDuel initially refused to pay the $82,000 winnings on the $110 bet, citing the palpable error rule clause in its house rules, and instead offered the punter a partial pay-out and hospitality tickets.
The bettor refused and took the issue to the media and the regulator, with the New Jersey Division of Gaming Enforcement saying it was going to investigate the issue.
And following discussion with the regulator, FanDuel announced yesterday it was going to pay the bet in full, along with several others at similar prices.
“Above all else, sports betting is supposed to be fun,” the company said in a statement on Thursday. “As a result of a pricing error this weekend, it wasn’t for some of our customers.
“These kinds of issues are rare, but they do happen,” the company said. “So, this one’s on the house. We are paying out these erroneous tickets and wish the lucky customers well.”
Neither FanDuel or the DGE specified whether this was a one-off, although the language used by FanDuel suggested it was indeed that.
This should not be mistaken for precedent, because it won’t be that. What is it? A brand realizing that you can’t take a massive negative PR hit three weeks in when competing in a 6m adult population market that will have 30+ brands. https://t.co/70JC3UcmnI
— Chris Grove (@OPReport) September 20, 2018
DGE spokesperson Kerry Langan said the regulator was “encouraged by FanDuel’s actions today”.
“The division will continue to work with FanDuel and the state’s other licensed sports wagering operators to ensure the implementation of industry-wide best practices,” she added.
FanDuel also says it will give away another $82,000 this weekend by adding $1,000 apiece to the accounts of 82 randomly chosen customers.
https://twitter.com/gamblinglamb/status/1042884598043160576