High court orders gamblers to return R13 million following system glitch
PAY BACK THE MONEY
Gamblers have been ordered to return R13 million won from an online betting game.
Image: Supplied
In a stunning reversal of fortune, a group of 159 gamblers has been ordered by the Pietermaritzburg High Court to return a staggering R13 million to a local online betting operator, following a legal ruling that deems their winnings to have been unlawfully obtained due to a system glitch.
The gamblers had placed bets on the game ‘Betgames Instant Lucky 7’, owned by Hollywood sportsbook KwaZulu-Natal (Pty) Ltd, in December 2023, enjoying a windfall that initially appeared to be a stroke of luck.
The game was created by a third party and resembled the national lottery.
Gamblers quickly discovered a significant oversight within the game’s betting framework: players were not having their stakes deducted from their accounts as they placed bets.
This technical glitch opened the floodgates for opportunistic players, who seized the chance to gamble without any financial consequences.
From December 22 to 31, gamblers collectively won R13 million, with the smallest individual win being R3,000.
Nsikayesizwe Thobelani Gcabashe reported that he deposited R50 on December 28 and R850 the following day. Over the course of four days, he placed 40 bets and won R443,700. He mentioned that he withdrew the winnings and transferred the amount to his personal bank account.
When Hollywood identified the glitch, it contacted all the winners and requested the return of the funds, but they refused. The company subsequently took the matter to court.
On January 5, 2024, Judge Jacqueline Henriques issued a temporary order ruling in the company’s favour. However, the court battle continued.
This week, Judge Robin Mossop SC stated that the company’s main relief in seeking to recover its money has been consistent.
The various banks, which included Capitec, Absa, African Bank, Discovery, and Nedbank, were ordered to freeze the accounts of the winners.
Judge Mossop stated he was not swayed by the affected players, who maintained that they did nothing wrong because they followed the rules and played with their deposited money in the betting game.
“The respondents gambled for free,” Judge Mossop declared.
“The wagers placed by the respondents through the impugned game were not valid. It must follow, therefore, that the respondents were not entitled to the winnings that they received from the impugned game and that they must be returned to the applicant.”
Judge Mossop said the winners used a template for their affidavits, which were the same, varying in only the amounts they won.
He said that he did not believe the players conspired to defraud the company.
“None of the respondents indicated who they specifically told about the impugned game, and it is, therefore, not possible to know whether the persons that they admitted telling are also respondents in this matter,” he explained.
Judge Mossop said the players might have told people who could not access the game.
“The respondents are scattered all over the province and the country, and are not confined to a specific area, nor has any relationship been established that links them one to the other.”