New Jersey Declines DraftKings’ Request to Void Winning Bets

• New Jersey regulators will not allow DraftKings to 215 winning bets on an incorrect total advertised for an October NBA game
• New Jersey joins Connecticut as one of the few states to disallow the void request from DraftKings
• DraftKings’ third-party SGP vendor, Sportcast, incorrectly posted first-quarter totals for the game as full-game totals

DraftKings will have to pay out 215 winning bets in New Jersey on an NBA game that featured incorrect game totals, as the state’s department of gaming enforcement recently denied the sports betting operator’s request to void the wagers.

The sports betting company filed an incident report with the New Jersey Division of Gaming Enforcement (NJ DGE) to void bets taken on an NBA matchup last month after the operator identified that incorrect same game parlay totals had been used for the game. DraftKings posted incorrect game totals for numerous players in the Oct. 24 matchup between the Los Angeles Lakers and Denver Nuggets. The incorrect totals were live for 13 minutes in DraftKings’ sports betting markets throughout the country.

The majority of states where these bets were accepted have allowed the operator to void the wagers, but a New Jersey DGE spokesperson said the state typically does not allow operators to void bets accepted even with “obvious errors.”

DraftKings Pays Out Bets in NJ

A miscommunication from the the company’s third-party SGP vendor, Sportcast, led to the national mistake, according to the company.

DraftKings representatives informed Sportcast it could not translate first-quarter SGP markets for the game. Sportcast, however, still sent the first-quarter SGP markets over to the sports betting operator and they were incorrectly identified on the platform as full-game markets.

For example, LeBron James’s full-game over/under totals were listed as 8.5 points, 2.5 rebounds, and 6.5 assists. Those over/under totals should have been listed as first-quarter totals. Incorrect totals were listed for a number of athletes involved in the matchup, not just James.

A New Jersey Division of Gaming Enforcement spokesperson told Sports Betting Dime that the decision impacted 150 New Jersey customers who placed a total of 215 bets.

“The New Jersey Division of Gaming Enforcement (DGE) completed its review of a request by DraftKings to void certain wagers on the LA Lakers-Denver Nuggets game on October 24, 2023. Pursuant to N.J.A.C. 13:69N-1.11, a sportsbook cannot unilaterally rescind any wager without obtaining DGE’s prior approval. DGE requires operators to pay bets even if posted at odds that are allegedly an ‘obvious error.’ DGE informed DraftKings it must pay the bets,” the spokesperson said.

New Jersey joined Connecticut as the only other state to require DraftKings to pay out the winning bets. Seventeen other states allowed the sports betting operator to void the wagers, bets on the market were not made in four states, and Massachusetts today reached a unique compromise with the operator for cash bonuses for affected users instead of a full void.

Sportcast Errors Have Cropped up Before

This is not the first time a Sportcast error has led to a potential costly payout for DraftKings. A New York bettor recently reported that DraftKings voided $300,000 in winning bets he placed on a January NBA game that featured incorrect odds set by Sportcast.

He placed three separate bets totaling $9,087.32 on Bridges’ first quarter totals, which were set at 2+ points, 1+ rebounds, and 1+ assist. Sportcast advertised incorrect odds of +3500 for the market, when the correct odds were actually just +100. The bets paid off at a total of $318,000, but were voided within several days.

In emails obtained by Sports Betting Dime, it was found that DraftKings has plans to replace Sportcast with in-house SGP technology following this New York incident.

Sportcast still remains as DraftKings’ SGP vendor.