Bet365 Fined $33,000 by New Jersey Regulators for Betting Drama

New Jersey regulators have levied a $33,000 fine on the sports betting company Bet365 for allowing wagers on events with outcomes that were already determined, as well as on games not approved for betting. This decision, revealed by the New Jersey Division of Gaming Enforcement (DGE) on Wednesday, underscores increasing scrutiny over sports betting practices in the state as it continues to grow as a major hub for legalized gambling.

According to the DGE, Bet365’s violations included a series of instances where bets were accepted on events that had already concluded. Among these was a notable case in which the company allowed wagers on a mixed martial arts match that had taken place a week earlier and was merely being broadcast on tape delay. This kind of lapse raises concerns about the safeguards in place to protect consumers and ensure that betting occurs under fair conditions.

The company has yet to respond to media inquiries seeking clarification or comment on the infractions, despite repeated attempts on Thursday and Friday. However, the fine comes as the second significant action taken against the UK-based gambling giant by New Jersey regulators in just over two months.

 

Previous Infractions and Refunds

In July, the DGE ordered Bet365 to refund a total of $519,000 to customers. In that case, the company had paid out winnings at odds that were unilaterally adjusted post-bet, resulting in lower-than-expected payouts for several bettors. Bet365 attributed the changes to an “obvious error” in its system, but the DGE made clear that any such modification of odds, or voiding of a payout, requires explicit approval from the state’s regulatory body. The company’s failure to adhere to these procedures was a key factor in the disciplinary action.

These back-to-back penalties may serve as a broader warning to other sports betting platforms operating in New Jersey’s lucrative market, signaling that mistakes—whether from human error, technical issues, or inadequate regulatory compliance—will not be tolerated.

 

Series of Violations from Early 2022

The latest fine stems from a series of violations that occurred between February and April 2022. On February 3, Bet365 accepted wagers on a college basketball game between Louisiana-Lafayette and Arkansas-Little Rock, despite the fact that the game’s start time had been moved up by an hour. Pre-match betting odds remained available for an extended period, allowing customers to place wagers after the game was already in progress.

A similar error occurred two weeks later during the Honda Golf Classic. Bet365 failed to adjust its betting windows, resulting in pre-match odds being available for four hours after the event had already begun. This prolonged availability of betting lines creates an uneven playing field for bettors, many of whom may have placed wagers with knowledge of outcomes already in progress.

More notably, the DGE detailed further instances in which Bet365 accepted wagers on mixed martial arts fights that had already concluded. In one case, the company allowed bets on a Professional Fighters League event that had occurred a full week prior. Such actions illustrate the critical role of real-time accuracy in maintaining the integrity of sports betting.

Beyond these issues, Bet365 was found to have taken bets on events that were not approved for wagering by New Jersey regulators. This included European friendly soccer matches, which had not received authorization, and bets on the Rutgers University football team. Under New Jersey law, betting on collegiate teams from within the state is strictly prohibited, a rule designed to prevent conflicts of interest and protect the integrity of amateur sports.

 

Bet365’s Response and Future Measures

In response to most of these incidents, Bet365 voided the bets, totaling over $257,000, and refunded customers their original stakes. However, in at least one instance, the company changed the odds on winning bets before issuing payouts—without receiving the required regulatory approval from the DGE. This aspect of the case is particularly troubling, as it demonstrates a breach in protocol designed to ensure transparency and fairness in payouts.

Bet365 offered regulators several explanations for these errors, citing both human and technical failures. It explained that staff had incorrectly entered event start times into its betting software, leading to the availability of odds well after events had begun. Additionally, the company claimed that software malfunctions contributed to the incidents, with the automated systems responsible for updating odds and closing betting windows failing to operate as expected.

In an attempt to prevent further violations, Bet365 informed regulators that it has since retrained its employees. While this move indicates a recognition of internal shortcomings, the company’s repeated violations may raise questions about the broader operational controls in place and the effectiveness of its safeguards.

 

“The two disciplinary actions taken against Bet365 within such a short span of time may indicate a broader intent by the Division of Gaming Enforcement to crack down on improper practices by all operators.”

 

The Future

New Jersey’s sports betting market has rapidly expanded since the state legalized the practice in 2018, making it one of the largest in the United States. With this growth, regulators have faced the challenge of ensuring that the burgeoning industry operates with strict compliance to rules that protect both consumers and the integrity of sports events. The two disciplinary actions taken against Bet365 within such a short span of time may indicate a broader intent by the DGE to crack down on improper practices by all operators.

As the industry continues to grow, these fines also serve as a reminder to betting companies about the critical importance of adhering to state regulations. While Bet365 is one of the largest sports betting platforms in the world, its repeated infractions suggest that even well-established firms can falter in meeting local regulatory standards.

The question remains as to how effective retraining and internal adjustments will be in preventing future violations. For now, New Jersey regulators appear poised to continue their oversight of sports betting operations, setting a precedent for the stringent enforcement of state laws to maintain a level playing field for all bettors.