DISPUTE RESOLUTION
third parties to set odds, the operators ratify those odds by publishing them on their platforms. 20 Because sportsbooks facilitate their own wagers with patrons, they have a duty to honor the wagers placed on their sites and take responsibility for mistakes made through incorrectly set odds. It would be imprudent for sportsbooks to be able to decide unilaterally that a bet was placed with incorrect odds and then to void it. 21 Without regulators exercising their discretion to step in and facilitate payouts (at correct, market rate odds) on bets that were placed at incorrect odds, sportsbooks could cancel large wins on the basis of even slightly-off odds under the guise that the wager was voidable for mistake. While debate continues as to the degree that sports betting is a game of skill versus chance, it certainly differs from buying a lottery ticket in a fundamental way. 22 Lotteries are purely games of luck. Patrons buy tickets of randomized combinations of numbers, and they may only win if their combination matches the winning combination. A sports bet, on the other hand, has two important components. The first is the bet itself. The bettor utilizes his knowledge of the game, facts about the player or team, history, context, and stats to divine a bet that something will or will not happen during the contest. A second separate component is the odds at which the bet is placed. Even if the sportsbook allowed the wager to be placed at incorrect odds, the bettor is still owed compensation for being correct about the outcome on which he or she bet. 23 A patron attempting to defraud the state lottery by presenting a falsified winning ticket is very different from a sports bettor winning his bet at incorrect odds
where the sportsbook can verify whether or not the bettor correctly predicted an outcome. In the latter case, the bettor deserves his prize even when the sportsbook errs and accepts the wager at mistaken odds. Conclusion With the explosion in popularity of sports betting (actively encouraged by the sportsbooks), many bettors are novices. This new generation will not become regular players if interested parties do not take affirmative steps to encourage them to continue playing. Part of this obligation requires that regulators protect individual bettors in disputes with sportsbooks over incorrectly set wagers and odds. It is impossible to determine the intent of every sports bettor and to know whether he or she is sophisticated enough to realize that odds are either too high or too low. Erring on the side of the players will be to the industry’s benefit in the long run. When disputes arise because bettors gain an advantage because of wrong odds or otherwise tainted bets, state gambling regulators should step in and settle the disputes by facilitating payout at market value odds using either the odds set by other books or by a fair value for that type of bet as determined by the regulatory body. By mandating that bettors will be paid winnings (instead of having their bets voided), but only at fair market values, state gambling regulators can not only protect bettors, but also ensure the health of the sports gambling industry. Having consistent, tight restrictions on sports betting will help ensure that the industry remains a viable gambling option in the United States.
MASON SCIONEAUX Juris Doctor Candidate 2024, University of Mississippi School of Law
For information contact mtscione@go.olemiss.edu
20 Re: RFP No. 2 -- Request For Proposals For Comprehensive Accounting And Auditing Services, MISS. LOTTERY CORP. (2019), https://mslotteryhome.com/wp-content/uploads/2019/09/Answers-to-Questions-regarding-RFP- No.-2.pdf 21 See generally Ledoux v. Grand Casino-Coushatta, 2006-1500 (La. App. 3 Cir. 4/4/07), 954 So. 2d 902, writ denied, 2007-0954 (La. 6/22/07), 959 So. 2d 507. 22 Lopez-Gonzalez, H., Griffiths, M.D. & Estévez, A. Why Some Sports Bettors Think Gambling Addiction Prevented Them from Becoming Winners? A Qualitative Approach to Understanding the Role of Knowledge in Sports Betting Products. J. GAMBL. STUD. 36, 903–920, 905 (2020). https://doi.org/10.1007/s10899-020-09944-3 (identifying sports betting as “skill-based gambling”). See also Marc Dib, A Game of Skill Or Chance: Why Texas Should Legalize Daily Fantasy Sports, 51 TEX. TECH L. REV. 361, 378 (2019) (addressing daily fantasy sports (“DFS”) contests as a game of skill or chance) 23 See, for example, Palmisciano v. Burrillville Racing Ass’n, 603 A.2d 317 (R.I., 1992)
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IMGL MAGAZINE | APRIL 2024
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