Highly rated sportsbook offers to cover BetEd balances in full

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On May 25th, 2011, Sportsbook Review reported that BetEd Sportsbook closed its doors after losing its domain following charges of money laundering and violating US banking laws. SBR is monitoring a potential BetEd Sportsbok bailout. | BetEd Sportsbook report

A highly rated sportsbook has offered to cover BetEd player balances in full.

BetEd has maintained that its assets have been seized by US authorities and that they cannot pay players. Players have been unable to log into their accounts since May 25th, and have not been given a direct statement from BetEd.

SBR's Bill Dozer reports on SBRforum that the situation amounts to a debt transfer. In taking over the player accounts and inheriting the liablities, the sportsbook receives new players without a marketing cost in acquiring the heads.

Some industry sportsbooks have chosen to extend bailout offers with excessive rollover requirements attached, a marketing ploy by sportsbooks used to generate good press and to potentially turn a profit.

SBR has confirmed that BetEd Sportsbook was offered the deal on Friday. If BetEd were to accept the initial proposal, players would regain access to their balances at the new sportsbook without being required to deposit. SBR has learned that another third-party is attempting to broker a deal to move the players to a different sportsbook. While effected players await new developments, SBRforum posters have chimed in pointing out that deposit requirements with a high rollover would not constitute a 'bailout' but instead a cash-bonus.

A positive for BetEd players and potential suitors is the sportsbook's exposure. BetEd has long advertised at gaming forums and has been active in marketing campaigns aimed at recreational sports bettors. Unlike past sportsbooks that have been deemed undesirable by larger sportsbooks, the belief is that BetEd is a potentially sweet pickup for an undisclosed amount of money. At this point, information suggests that only BetEd is standing in the way of the bailout's consummation.

SBR will continue to monitor the situation and will update readers on whether the deal goes through.

UPDATE — SBR has learned new details of a proposed bailout. A sportsbook is offering to make available 10% of player balances each month as long as the balance was rolled over 1X.

BetEd Sportsbook history
BetEd was a middle of the pack sportsbook that came under fire for controversial handling of multiple high-profile sportsbook complaints in the last three years. BetEd's highest SBR rating was B-. Up until the federal indictment, BetEd had a fair financial track record and never entered the SBR Sportsbook Blacklist.

 

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