PointsBet’s New York Platform Faces Glitch in In-State College Bets

PointsBet’s New York platform, now called PointsBet, a Fanatics Experience, mistakenly allowed Empire State residents to place bets on in-state college teams, a violation of state law. The error occurred during a game between the Syracuse Orange and the Virginia Tech Hokies, as well as the Army vs. UMass match, both involving New York-based teams.

Third-Party Error at PointsBet New York Spurs Regulatory Response

The mishap was attributed to a third-party error involving Don Best Sports, the platform that collaborates with PointsBet’s New York operations for college football. The rebranded PointsBet, a Fanatics Experience, admitted that a “small group of customers placed bets” on the Syracuse vs. Virginia Tech game before the mistake was discovered. The bets were settled late Thursday night, with the Orange losing 38-10 as 3-point underdogs.

PointsBet representatives only realized the error after the game had ended. Once identified, PointsBet promptly self-reported the issue to the New York State Gaming Commission (NYSGC) and voided the wagers. In cases where impermissible bets were part of parlays, those legs were voided, and the remainder of the parlays were adjusted accordingly.

The NYSGC, which oversees gambling activities in the state, assured the public that PointsBet and its provider had taken corrective measures to prevent similar incidents from happening again. The incident has raised concerns about the effectiveness of the platform’s safeguards and the reliability of third-party operators. The NYSGC, however, has not released further details regarding the oversight of third-party involvement in the state’s sports betting operations.

Fanatics Sealed PointsBet’s US Business Acquisition with NYSGC Approval

PointsBet’s New York operations are currently transitioning to Fanatics control, a move that was approved by the NYSGC earlier this month. At the end of June, Fanatics Betting and Gaming successfully secured the acquisition of PointsBet’s US-facing business for $225 million, following an initial proposal of $150 million. PointsBet’s shareholders overwhelmingly approved the sale, alleviating concerns about the company’s share price performance and the high costs associated with its US expansion. Despite an unexpected counterproposal from DraftKings, Fanatics’ increased bid led to the withdrawal of DraftKings from the bidding process, solidifying Fanatics’ victory in the battle for PointsBet’s US assets.

This month NYSGC approved Fanatics Betting and Gaming as the successor of PointsBet’s license, allowing Fanatics to offer sports betting products in New York. The PointsBet app in New York will eventually be fully rebranded to align with the Fanatics platform. Fanatics also plans to enter the iGaming market by launching Fanatics Casino in legal gambling states in late 2023 or early 2024.