Massachusetts Gaming Commission Saves DraftKings From Massive Payout After Odds Error

The Massachusetts Gaming Commission (MGC) has saved DraftKings from a $575,000 payout. The regulator announced that the Boston-based sportsbook would be allowed to void bets placed on the Lakers-Nuggets game on October 24. The operator has claimed that an error led to the same game parlay odds being incorrect, with first-quarter player totals accidentally being applied to the full game. 

A total of 137 Massachusetts bettors saw the low totals and capitalized, leading to over $4,000 in bets and $575,000 in winnings. One wager alone accounted for over $150,000 in winnings, thanks to the skewed odds. 

DraftKings insisted that the payout should be voided since the odds were incorrect. They told the MGC that Sportcast, who provided their odds, gave them the wrong number, which caused the massive loss. The MGC first considered a motion to force DraftKings to pay out the winnings, but it was narrowly defeated 3-2. The following motion, which passed 3-2, would allow the operator to void the bets, but only after they awarded a 3x cash bonus to all 137 bettors.

DraftKings Statement to MGC Causes Backlash

While DraftKings acknowledged the mistake should have been caught on their end, they insisted the people who placed the bets were the bigger problem.

“Letting the wagers stand in this case doesn’t protect the betting public,” DraftKings stated in a letter to the MGC ahead of their second vote. “Instead, it rewards a small, undesirable segment of it, as the behavior of the overwhelming majority of users that wagered on these markets indicates that their sole purpose was to exploit the obvious error. It is not in the best interests of the Commonwealth of the Sports Wagering Industry.”

This comment caused backlash from several MGC commissioners who took exception to the “undesirable segment” label applied to the 137 bettors. Several also called out DraftKings for claiming that voiding the bets would be better for the betting public without providing any evidence to support the claim. 

While the MGC ultimately agreed to void the bets, their response shows that DraftKings may not get the same benefit of the doubt if this error repeats itself.