Near the end of 2008, the player deposited $500 at Gambler's Palace, and received a $250 bonus. He won $237, and requested a withdrawal before meeting the required rollover.
GamblersPalace had a rule on point:
In order to redeem any deposit bonus, you must meet the rollover requirements. You must wager the original deposit plus any bonuses and fee's prior to making a withdrawal. Withdrawals can be made prior to wagering the full amount, but the bonus will be forfeited.
GamblersPalace deducted the $250 bonus, as well as $137 in winnings, and paid the player $600. The parties agree that GamblersPalace had no rule on point to confiscate winnings.
SBR recommended that GP pay the player the $137 in winnings, and revise its terms and conditions if it intends to do this in the future. GP agreed to revise its rules, and initially agreed to pay the player.
GamblersPalace reneged on its promise to pay the player. The principals of the company claimed that the manager handling the dispute did not have authority to bind GamblersPalace in this dispute, and the promise was just "him personally", not by GP's principals.
Issue #1: Can Gambler's Palace confiscate winnings for failure to meet rollover when there is no term or condition addressing this?
A sportsbook cannot confiscate winnings for failure to meet rollover unless there is a rule clearly on point. There are situations where this is fair and reasonable to defend against professional bonus players. However, it must be clearly stated in the rules. It was not, so Gambler's Palace has illegally confiscated $137.
Issue #2: Can an employee of a sportsbook bind a sportsbook in an agreement?
An employee acting with apparent authority can bind the sportsbook unless the other party knows the manager does not have authority to reach an agreement. In this case, the primary person handling the dispute stated "We will revise our rules and pay the player." From the employee's statement, any reasonable person would believe he is speaking on behalf of the sportsbook.
In this case, GamblersPalace confiscated $137 from the player with no basis - in other words, outright theft. GamblersPalace then promised to pay the player and reneged on its promise. A re-evaluation is pending.
GamblersPalace had a rule on point:
In order to redeem any deposit bonus, you must meet the rollover requirements. You must wager the original deposit plus any bonuses and fee's prior to making a withdrawal. Withdrawals can be made prior to wagering the full amount, but the bonus will be forfeited.
GamblersPalace deducted the $250 bonus, as well as $137 in winnings, and paid the player $600. The parties agree that GamblersPalace had no rule on point to confiscate winnings.
SBR recommended that GP pay the player the $137 in winnings, and revise its terms and conditions if it intends to do this in the future. GP agreed to revise its rules, and initially agreed to pay the player.
GamblersPalace reneged on its promise to pay the player. The principals of the company claimed that the manager handling the dispute did not have authority to bind GamblersPalace in this dispute, and the promise was just "him personally", not by GP's principals.
Issue #1: Can Gambler's Palace confiscate winnings for failure to meet rollover when there is no term or condition addressing this?
A sportsbook cannot confiscate winnings for failure to meet rollover unless there is a rule clearly on point. There are situations where this is fair and reasonable to defend against professional bonus players. However, it must be clearly stated in the rules. It was not, so Gambler's Palace has illegally confiscated $137.
Issue #2: Can an employee of a sportsbook bind a sportsbook in an agreement?
An employee acting with apparent authority can bind the sportsbook unless the other party knows the manager does not have authority to reach an agreement. In this case, the primary person handling the dispute stated "We will revise our rules and pay the player." From the employee's statement, any reasonable person would believe he is speaking on behalf of the sportsbook.
In this case, GamblersPalace confiscated $137 from the player with no basis - in other words, outright theft. GamblersPalace then promised to pay the player and reneged on its promise. A re-evaluation is pending.