Gamblers Ordered to Return $750K After Hollywoodbets System Glitch
More than 100 gamblers were ordered by a South African judge to refund the approximately US$750K they "won" from an online betting game while it was down.
The participants were using the South African online gambling site Hollywoodbets to play "Instant Lucky 7," an instant lottery game created by Betgames. When the operator's system detected abnormally large winnings, the game was shut down after just seven days, during Christmas week in 2023.
Unintentional Freeroll
Given that a system bug was enabling players to play for free, that shouldn't come as a surprise. Since the game allowed users to wager and withdraw earnings without deducting the stake from their accounts—a gambler's dream—dozens of players soon realized they were "freerolling" on it.
Although it was Christmas, it felt like Christmas had arrived early, therefore in this instance, Christmas was essentially on schedule.
All of this was seen negatively by Pietermaritzburg High Court Judge Robin George Mossop last week, who stated that the gamblers "must have noticed the weakness in the impugned game, and they exploited it," according to the Johhanesburg Sunday World.
Additionally, the judge pointed out that "a bet" by definition necessitates a stake and a degree of risk, neither of which existed due to the error.
In other words, it isn't a legitimate wager if these two conditions aren't met.
"The wagers placed through the faulty game were not valid. The respondents gambled without paying, and thus, they are not entitled to keep the winnings,” said Mossop, in ordering the gamblers — and their banks – to return the money.
He decided that since the company's terms require that invalid bets be refunded, it has a right to recover.
"Sue Me"
When Hollywoodbets contacted the players after learning of the blunder, the majority of them responded with something along the lines of "sue me," according to Mossop.
He said, "This matter is before me today because the applicant complied."
Hollywoodbets' allegation that the participants conspired to commit fraud was dismissed by the judge. He pointed out that there was no indication of any coordination or link between the bettors, who were dispersed over the area.
He also said that many gamblers had experienced financial difficulties as a result of a previous court decision that had blocked their bank accounts.
