A divisive issue

DraftKings has set the cat among the pigeons with its request to void 178 bets on an October NBA game, dividing the members of the Massachusetts Gaming Commission (MGC) over the issue.

Regulatory writer Ryan Linnehan took to X Thursday with details of the MGC’s meeting on DraftKings’ request after the sportsbook discovered it posted the bet at incorrect odds:

According to Linnehan, while most MGC commissioners were in favor of letting DraftKings off the hook, others were not, with the final vote on the matter adjourned until November 30.  

The error under scrutiny was DraftKings posting first-quarter over/under totals on the Los Angeles Lakers vs Denver Nuggets matchup on October 24 as entire game totals.

Third-party poopers

Senior Director of Regulatory Operations for DraftKings Jake List told the MGC that the error was down to a miscommunication between his firm and its third-party, same game parlay vendor Sportcast.

List stated the sportsbook’s platform could only handle full-game SGPs and, although Draftkings informed Sportcast of this, the third-party firm sent over first-quarter markets that DraftKings interpreted as full-game ones.

that’s an indication that the customers clearly know it’s an error.”

The regulatory executive highlighted social media chatter about the bet, stating “when customers notice and they parlay it all together, that’s an indication that the customers clearly know it’s an error.”

MGC Commissioner Brad Hill was in agreement the bet was an obvious error and said he “had no problem at all” voiding it. While Commissioner Nakisha Skinner was also in favor of the void, she asked if DraftKings had an indemnity clause with Sportcast.

If this was the case, Skinner added, the party at fault would need to pony up the winnings.

O’Brien unconvinced

At the Thursday meeting, MGC Commissioner Eileen O’Brien was one of the most skeptical commissioners. She asked List if any other states had voided the DraftKings bet, to which the executive answered there were several.

O’Brien, however, stated she was “not convinced” by DraftKings’ reasoning. She said the sportsbook needed to effectively prove voiding the bet was in “the best interest of the commonwealth and the integrity of the sports betting industry.”