Neighboring states are seemingly at odds over what to do when legal sportsbooks make a mistake and bettors’ money is on the line.
Or, at least, that’s what recently happened in the New York sports betting industry, along with its tri-state counterparts in New Jersey and Connecticut, which found themselves in the middle of a basketball betting fiasco.
Gambling regulators in the three states are taking different approaches to a costly controversy involving DraftKings Sportsbook on the opening night of the NBA season, according to multiple reports.
Whoopsy! NY sportsbook users jump on mispriced hoops odds
According to DraftKings Sportsbook NY, a third-party provider, Sportcast, is responsible for mispriced game totals that were heavily customer-friendly being posted before the Oct. 24 matchup between the Los Angeles Lakers and Denver Nuggets.
Once the errors were spotted, about 13 minutes later, the lines were pulled down and DraftKings voided all tickets with the faulty lines.
However, gamblers all over the country were able to put down bets for the brief time the lines were available.
Exactly how much is unknown due to varying reporting practices in each state. But some media outlets suggest it could be a seven-figure total.
New York sides with DraftKings, while others back the player
Nearly 20 gaming jurisdictions were left with a decision about whether to allow DraftKings to void the bets or side with the customers who won. Legal sports betting has no federal regulations; states are responsible for setting and enforcing rules for sports gambling.
New York gaming regulators joined 16 other states in allowing DraftKings to void the bets. The New York State Gaming Commission made no mention of the DraftKings voids during its Dec. 3 public meeting.
Meanwhile, the New Jersey Division of Gaming Enforcement required DraftKings to pay out winning bets, as did Connecticut gaming officials. The winning bets in CT totaled approximately $150,000.
ESPN gambling reporter David Payne Purdum chronicled the regulatory saga via X, formerly Twitter.
More on NY sports betting blunder
Sportcast provides same-game parlay products to several online sportsbooks, including DraftKings.
According to various reports, a miscommunication between Sportcast and DraftKings prior to the NBA opening night game led to the national mistake.
The end result was that Sportcast posted game total lines for play props as opposed to first-quarter totals. The mistake led to tickets where, for example, LeBron James’ over/under points total for the entire game was in the single digits.
DraftKings still uses Sportcast for its NY same-game parlay betting products.
