Online Betting Glitch Costs Millions!
Johannesburg – A major blunder by an online betting company has resulted in a court battle to reclaim millions of Rands paid out to lucky punters. Hollywood Sportsbook, a popular online gaming platform in South Africa, recently won a court case ordering approximately 104 individuals and banks to return a staggering R13 million.
The issue arose from a flaw in the Betgames Instant Lucky 7 game back in December 2023. Due to an error made by an outsourced game developer, the game failed to deduct funds from players' accounts when bets were placed. This meant players could essentially gamble for free, with no risk to their own money.
"This, ultimately, meant that the punter could gamble for free and at no risk, for it cost him nothing to acquire his numbers in the draws but he could still win. When the punter won, the winnings were paid into his or her account," stated a Pietermaritzburg High Court judge in the ruling.
The glitch was quickly detected by the company's monitoring systems due to unusually high winnings, and the game was subsequently removed. However, in just over a week, over R13 million had already been paid out. One cited example showed a player placed around 40 bets and won a substantial R443,700, which was then transferred to their personal bank account.
While the judge acknowledged that the respondents likely noticed and exploited the flaw, Hollywood Sportsbook's claim of collusion to defraud the company was dismissed. The court highlighted that the winners were geographically dispersed across KwaZulu-Natal and the country with no established links between them.
After the discovery, Hollywood Sportsbook contacted the winners requesting repayment, but most refused, leading the company to pursue legal action. This case highlights the importance of robust testing and quality assurance in online gaming platforms to prevent costly errors and potential exploitation.