Sportsbook Bet Cancellation: Breach of Contract Legal Remedies

When you sign up for an online sportsbook account, you must agree to the terms and conditions. This agreement is a contract between you and the sportsbook company, along with your rights and obligations. The agreements favor the sportsbook, but you still have contractual rights if they don’t fulfill their obligations.

Sportsbook contracts give the companies many ways to cancel a bet or wager. However, if they cancel a wager or deny your payout in violation of the agreement, you may have a breach of contract claim against the sportsbook. To understand more about your contract rights, talk to a consumer law attorney.

Online Sportsbook Betting Laws

After the U.S. Supreme Court’s 2018 ruling in Murphy v. National Collegiate Athletic Association (NCAA), many states revisited their sports wagering laws to legalize sports betting. Since that time, most states and Washington, D.C., now allow sports wagering, either online or in person.

Online sportsbooks allow players to bet on popular NFL, NBA, and college sports events. Gamblers can bet the moneyline, over/under, or bet on the point spread. Players can also make prop bets on individual athlete performance. Some of the most popular online sportsbooks include BetMGM, Caesars Sportsbook, DraftKings, and FanDuel.

Individual states regulate legalized sports betting. In many states, sports gambling is legal, but other forms of gambling are not. Some states consider sportsbook wagers to be games of skill. However, this distinction varies by state. A number of states continue to prohibit online gambling, including sports betting.

As with any gambling activity, there are financial risks involved with making wagers. Sports gamblers should also take proper cybersecurity measures, as their sportsbook account contains personal information and provides access to finances.

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Terms of the Sportsbook Contract

Sportsbook agreements have a lot of fine print that could take hours to go through. Most people just scroll to the bottom and click a box that they agree to the terms.

In most cases, the terms of these contracts bind the bettor. The terms generally include the sportsbook’s right to cancel a bet for various reasons. You must review the terms of the agreement to understand your rights and obligations, as well as those of the sportsbook.

Can a Sportsbook Cancel a Bet?

A sportsbook contract may allow it to cancel a bet and return your wagers for any reason. However, most sportsbooks only cancel a sports bet because of a problem or conflict.

Common reasons a sportsbook will cancel a bet include:

• Technical errors
• Cancellation of a sporting event
• Prohibited bets (such as combining multiple parlays with related bets)
• Bets without sufficient funds (declined or canceled deposits)
• Events affected by illegal activity
• Influence or syndicate sports betting
• Bets made by prohibited betting participants

Sportsbooks can also void a bet if there has been a significant change to the event (such as a date change or venue change). Generally, the sportsbook cancels the bet and returns the bettor’s wager. For example, DraftKings’ policy voids bets on an event that is canceled.

Online sports betting platforms may cancel a bet because of a technical error. For example, a gambler was improperly able to place a bet after the event started. The sportsbook may identify the error and cancel the bet. The terms of sports betting apps generally allow for this type of cancellation due to errors.

Breach of Contract Claims

When you sign up for a sportsbook, you agree to the terms of the contract. These contract terms generally benefit the sports betting company. You have to review the contract to determine your rights in the event of a dispute.

Many sports wagering sites include arbitration clauses that require you to resolve disputes through arbitration rather than filing a lawsuit. Courts generally enforce these binding arbitration clauses, which may also limit a party’s ability to join a class action lawsuit.

If you have a dispute with the gaming app, contact them to begin the dispute resolution process. Gather evidence to support your claim, including financial statements, player activity accounts, and emails. Take screenshots of any transactions so you have evidence of your online activity later.

If you cannot resolve your issues with the sportsbook, you can contact your local gaming authority. Depending on the state, it may be a gaming commission or a tribal authority. Different states and agencies have distinct dispute-resolution policies.

If you still cannot resolve the dispute, talk to a local attorney about your legal options. If the gaming company uses deceptive business practices or commits fraud, you can file a lawsuit to recover compensation.

Class Action Lawsuits for Canceled Sportsbook Bets

There have been a number of class action lawsuits filed against the major online sportsbooks related to canceled bets. Sports bettors make wagers based on the best available and up-to-date information, which turns out to be accurate.

The bettors then find out the sportsbook canceled the bets, denying their wins. The sportsbooks cited their “house rules,” giving them the right to cancel bets. Talk to an attorney to see if you have a similar claim for improperly canceled bets.

Risks of Sportsbook Gambling

While some states view sports wagering as a game of skill rather than a game of chance, sports gambling still involves financial risk. Problem gamblers may have difficulty limiting their online betting activity.

If you have a gambling problem, contact your mental health provider. You can also find resources and help by calling the National Council on Problem Gambling at 1-800-MY-RESET.

Legal Advice for Sports Bettors

Online sports wagering agreements heavily favor the house. Sportsbooks can cancel bets and wagers for any number of allowable reasons. However, sportsbooks cannot commit fraud or violate consumer protection laws. For legal advice about how you can recover money from canceled sportsbook bets, contact a local consumer law attorney.