FanDuel Pricing Error Means Big Bucks for Jersey Player
Remember way back when FanDuel executives swore up and down that their company was not involved in or promoting sports betting? After their handling of a bizarre pricing error at the tail end of a Denver Broncos football game last week, some industry observers may wonder if that statement isn’t still true, even though the DFS giant runs its own, branded sportsbook at the Meadowlands Racetrack.
FanDuel’s troubles started late Sunday afternoon when the Denver Broncos were posted as a +750 underdog to win the game. This incredibly sweet deal flew in the face of the game itself, which featured the Broncos mounting a late game comeback and trailing the Oakland Raiders by only two points. To make matters worse, for Fanduel, was the fact that the Broncos were in position to kick a 3-point, game-winning field goal when the odds were posted.
None of this seemed like bad news to bettors like Anthony Prince, who seized the day with a $110 wager that would pay out $82,500 if Denver won, which they did.
Of course every sportsbook on the planet has a plan for pricing errors and virtually none of them honor this kind of mistake. But few sportsbooks are operating in a fishbowl the way FanDuel is, so the company was in a bit of pickle. After all, they really don’t want to alienate or anger bettors during the third week of professional football season in a state where sports betting’s only been legal for a couple months.
So, despite getting the OK from NJ gaming officials to payout at the correct odds, -600, the company went ahead and paid Price his $82,000. In a statement on their website, FanDuel said, “We are committed to ensuring sports betting is reliable and fun for everyone, and we don’t want an eighteen second error to define anyone’s experience. So let’s have fun.”
Though FanDuel took pains to state that it was under no obligation to actually pay out the wager, it did and possibly set the company for difficult situations in the future.