Can Consumers Really Trust Gambling Companies?

The online gambling industry continues to grow at a rapid pace, but with its expansion comes questions about trust and accountability. Recent events involving DraftKings, one of the top two online gaming operators in the U.S., have highlighted concerns about transparency and player protection. 

A glitch in a DraftKings slot machine game led to over 20,000 spins without a single win, sparking an investigation by Connecticut’s Department of Consumer Protection (DCP). While the situation has been resolved, it raises the question: Can consumers trust gambling companies?

DraftKings fined by CT for can’t-win casino game

In August 2023, a Connecticut player identified as James noticed something was wrong with a new Deal or No Deal Banker’s Bonanza slot game on DraftKings casino platform. After playing hundreds of spins without a win, he realized that something was amiss. Over the course of a week, 522 players in the state made over 20,000 spins on the game, with none receiving a single payout. This was an anomaly, as slot machines typically advertise a return to player (RTP) rate, which in this case was supposed to be 95%.

Following multiple complaints, an investigation by Connecticut regulators found that a computer glitch had set the odds to zero, making it impossible for anyone to win. Despite the game being live for a week, neither DraftKings nor the developer, White Hat Gaming, informed the DCP of the issue until regulators intervened. Ultimately, DraftKings refunded nearly $24,000 to the affected players but was fined $19,000 for its handling of the situation. White Hat Gaming was fined an additional $3,500.

Transparency: Governmental oversight vs. self-reporting

One of the most troubling aspects of this incident was how DraftKings initially handled customer complaints. James C., a VIP customer with years of experience gambling on the platform, recorded a video showing multiple failed attempts to win on the game. When he presented this evidence to DraftKings, the company temporarily locked him out of his account and referred him to gambling addiction services, which left him feeling frustrated.

In another case, a customer service representative downplayed a player's complaint about more than 100 spins without a payout, stating, "I understand it can be frustrating to have a bit of a cold streak, but I can assure you that there is nothing wrong with the game itself." This statement was made even after the company had begun investigating the issue internally. The lack of transparency and accountability in these responses played a significant role in the fines issued by Connecticut regulators.

The fact that DraftKings did not self-report the glitch until regulators got involved raises concerns about the effectiveness of self-monitoring within the industry. While the company eventually refunded all affected players, the delay in addressing the issue highlights the potential need for stronger hands-on oversight.

Regulatory bodies like Connecticut’s Department of Consumer Protection play a crucial role in protecting consumers from malpractices in the gambling industry. Without their intervention, it's unclear whether DraftKings would have fully acknowledged the glitch in a timely manner. 

In the case of the DraftKings slot machine glitch, government regulators intervened when DraftKings failed to act on customer complaints. As DCP spokeswoman Kaitlyn Krasselt noted, “This is a great example of something that, if we were not there to intervene, may not have been taken seriously.” The state's proactive approach ensured that affected players were compensated, and stronger internal controls were implemented.

Trust between gambling operators and consumers

The DraftKings slot machine incident reveals a deeper issue: the balance of power between gambling operators and consumers is heavily skewed in favor of the companies. While refunding bets and paying fines can rectify individual cases, the repeated nature of these issues raises concerns about whether gambling companies can truly be trusted with consumer fairness.

Furthermore, many players may turn to offshore sportsbooks or traditional bookies in the absence of trust in regulated options, where the risks can be even higher. Ensuring that regulated gambling operators are held to high standards is essential for maintaining consumer confidence in the industry.

Bet365 Monday Night Football Odds Debacle

DraftKings isn’t the only gambling operator facing trust issues. Bet365 also faced scrutiny around the NFL Week 1 Monday Night Football game between the New York Jets and San Francisco 49ers. A bettor pointed out on social media that Bet365 significantly altered the odds for 49ers backup running back Jordan Mason’s rushing yards mid-game, after starting running back Christian McCaffrey was ruled out. This change occurred despite the bettor placing the wager at significantly more favorable odds before McCaffrey’s inactive announcement, raising concerns about fairness.

The tweet, paraphrased, stated: Bet365 cut Jordan Mason’s rushing yards prop mid-game when it appeared likely to cash. Betting odds shouldn’t change mid-play, and this is a clear violation of trust.

UPDATE: After receiving significant blowback online, Bet365 released a statement apologizing:
"SETTLEMENT UPDATE: Jordan Mason – Over 13.5 Player Rushing Yards (NY Jets @ SF 49ers) Please be aware that all bets on this market have settled at the odds taken when the bet was placed. We apologize for any confusion caused in the settlement of this market."

However, this incident adds to the growing skepticism about whether gambling companies prioritize consumer fairness or their bottom line.

Sources:

Connecticut Post

CNBC