When it comes to placing bets at an online sportsbook or any other gambling site, it’s usually the case that we, as punters, are solely interested in the wagers and we give little thought to the legalities behind them.
We see a sports event that we want to bet on, and we usually go ahead and place it. Not many of us have really considered how this bet works “behind the scenes”, so to speak.
Most people will only think beyond this when something goes wrong.
Let’s get ahead of the curve then, and ask what exactly is a bet when you place it and is it upheld in law? In other words, are gambling contracts legally enforceable?
We’ll look closer at what exactly makes a bet a contract and how they are actually enforced. Plus, we have some information on how people are able to make complaints and potentially take companies to court over these contracts if necessary.
Is A Bet Actually A Contract?
If you were to visit an online gambling company that holds a licence from the United Kingdom Gambling Commission (UKGC), and proceed to place a bet there, this would enter you into a contract. That bet is legally binding, and acts as a contract between you as the punter and the sportsbook as the service provider.
The terms and conditions of the bet must be made clearly visible and readily available to you before you proceed with it. You need to be familiar with those terms prior to submitting your wager as well, so there is responsibility on your part.
The terms that govern your contract are specific to the gambling site in question, although terms legally have to be clear and fair so there is a lot of commonality. This is especially true if it should come to the point where the circumstances surrounding a bet change that can lead to bets be voided, payouts reduced or even refused.
In an effort to keep the industry fair, the UKGC states in its official wording that it requires a gambling businesses in the UK to “provide a means for you to complain about the bet” . In order to complain, though, you must be sure that the betting company has either not met their own T&C’s or that those T&C’s are unfair, unclear or misleading.
You need to complain to the gambling company first, then, if you cannot resolve things, you can escalate the complaint to an independent body such as IBAS who can settle complaints up to £10,000. If all else fails, and you strongly believe you have a case, you can take a company to court – although this costs a lot of money and is rarely worthwhile.
Bookmakers are Private Businesses
Your bet can also be refused by a gambling business. These companies are private businesses and therefore, they can pick and choose their customers. Just as you take the decision to place a wager on a game or sporting event, the sportsbook can pick and choose who they accept bets from. They can also decide upon their own terms that govern the bets they accept.
The likelihood is that they will accept 99.9% of all bets placed, because gambling companies like making money, but they don’t have to.
Due to the fact that a bet is a commercial arrangement between two parties who are both willing to enter into the contract, there is nothing that dictates that the bookmaker must accept your bet. It’s no different to being barred from a pub. Also similarly to commercial businesses, offers may be withdrawn whenever the company feels like it, so a gambling businesses may withdraw offers or refuse bets as a way of reducing the risk to their business.
The fact that a bet is a contract is also the reason you can’t sell your bets, bet on behalf of someone else, bet with someone else’s money or use insider information or knowledge attained by ill gotten means. If you are suspected of committing fraud or using illegally obtained money you will contravene the terms of your contract, which may lead to a betting company refusing to pay you out (and even keeping hold of your stakes and deposits following investigation).
If you were ever paid out accidentally or paid out more than you should be, gambling companies can force you to pay back that money. All elements of the contract are dictated by the company’s T&C’s – some of which are at their discretion and some they are obliged to enforce by law (such as you needing to prove you are over 18 and where you live).
Your Rights When Entering Into A Gambling Contract
Just as the sportsbook that you are placing a bet with has rights, so too do you as a customer. The contract works both ways, so if you believe you have suffered at the hands of an unscrupulous bookie, you should complain.
All gambling businesses holding a licence from the Gambling Commission must also have a complaints procedure in place. This should be easy to find and clear to understand.
You should always complain directly to the gambling business itself in the first instance. In most cases, disagreements can be resolved at this stage. However, if you still aren’t happy with the outcome, you can escalate things, because all gambling businesses should also provide their players with access to an alternative dispute resolution service (ADR). This should be offered freely for the consumer, and this route should be taken before you make any decision on whether or not to take the company to court.
An ADR operates independently of the gambling business, and therefore has no bias towards either side. Your complaint will be looked at again by the ADR, which has to be chosen by the gambling operator from a UKGC-approved list of providers by the gambling business. That ADR provider must be listed in the business’s complaints procedure terms.
Betfred Comes Up Short in £1.7 Million Jackpot Payout
One example of a player suing a gambling business and winning occurred in 2018, when Andrew Green chose to play blackjack online with Betfred. During his gameplay, Mr Green hit a huge £1.7 million jackpot. Right after winning it, he was contacted and congratulated by an employee of Betfred.
However, just five days later, Mr Green was informed by the operator that he would not be receiving his £1.7 million jackpot reward. Why? Because Betfred said that the platform had experienced a software glitch, which meant that the game had not been able to reset itself. Rather than pay out his winnings, Betfred offered the player a good will gesture of £60,000.
Mr Green rejected that deal and proceeded with legal action against Betfred. That lawsuit went on for three years, with a result only coming at the beginning of April 2021. The High Court judge Mrs Justice Foster ruled in Mr Green’s favour, stating that Betfred had no grounds for withholding the jackpot win from him. That ruling meant that the player would receive all of his £1.7 million payout, plus additional interest of £600,000 on top, a total of £2.3 million. Betfred apologised for its delay in paying out the sum to Mr Green, stating that it would not appeal the ruling.
After the final ruling, Mr Green spoke up, encouraging other players who have been mistreated by gambling companies to challenge them in court. He said that his was outright proof that justice is not something that is impossible to get – even against a large company like Betfred.
It Hasn’t Always Been the Case
Gambling may have been around for many centuries already, but it hasn’t always been the case that betting contracts were legally enforceable. In fact, up until the introduction of the Gambling Act 2005, players weren’t legally covered at all. Along with this act, gambling debts became legally enforceable, helping to ensure that those players who won actually got their rightful winnings.
This law was introduced alongside others, such as the setting up of the Gambling Commission to govern the industry, the possibility for local people to object to new gambling premises, and the necessity for operators to prominently display information about responsible gambling.
However, it was only relatively recently that gambling laws in Northern Ireland were altered so as to cater to this particular area as well. Towards the end of May 2021, reports of the first significant changes to those laws in 35 years were announced. The legislation allowed bookmakers to open on Sundays and on Good Friday, while it became an offence to allow minors to access gaming machines.
At the same time as those new pieces of legislation though, Northern Ireland also made gambling contracts enforceable by law. Commenting on the introduction of change in Northern Ireland, Communities Minister Deirdre Hargey said that the country’s legislation was “old and complex”, and that it had not kept up the pace with modern day changes and emerging technologies.
The Power of the Gambling Commission
The Gambling Commission may have only been set up as part of the Gambling Act 2005, but it has obtained plenty of power since then. For example, the Commission can void a bet, if it decides that the wager placed was “substantially unfair”. In this instance, the player’s wager should be returned to them by the gambling business, and if it isn’t, then they can legally make a claim for it.
The factors which are considered when deciding whether a bet is unfair, include if either party was supplied false or misleading information and if either party believed that the game or other process related to the bet would be conducted in contravention of industry rules.
Each different country has its own gambling regulatory body or laws, and it is up to these bodies to set up the necessary rules around gambling. This will determine whether gambling contracts are legally enforceable by law within the jurisdiction they cover.
In the United States of America, for example, contracts relating to legal gambling activities only become enforceable in states where gambling is legal. Certain types of gambling are still not allowed in some US states, and the bets that players place at offshore sites cannot be considered legally enforceable. Therefore, should a player partake in offshore casino gambling, they risk not being able to legally complain or sue the operator for failed payouts etc.
It’s the same in the UK. Even if you bet within a legal market like the UK, you are only protected in law if you bet with a licensed betting company. If you bet with an unlicensed gambling site and they decide not to pay you out or simply steal your money, there is little you can do. The onus is also on you as the bettor to ensure the site you are betting with is licensed.
It is always important to check where the online sportsbook that you are joining is licensed. Read through the terms and conditions associated with its licence and find out if you are covered legally for your betting contracts. You need to know that you have a legal course of action that you can take should the circumstances surrounding a wager change.