At BetProtocol, one of our core missions is to bring more accountability and trust to the online gaming market.
Have you heard about how one sports betting fan was (nearly) cheated out of a $82,000 win, because an operator claimed it was just some glitch?
Anthony Prince of Newark, New Jersey bought a 750–1 odds ticket with about a minute left in the Broncos-Raiders game last Sunday. He put down $110, and at those odds, if he won, the payout would have been $82,000. With the game clock running down, Prince placed his bet on the Broncos, who trailed 19–17. The Broncos then went on to kick a successful field-goal, clinching their comeback win. Prince must have been elated. That is, until FanDuel reneged on the bet.
“The wager in question involved an obvious pricing error inadvertently generated by our in-game pricing system,” FanDuel said.
Initially, the betting operator refused to pay out for their error, offering Prince only $500 and skybox seat tickets to see three Jets games. After a flurry of negative press, and consulting with New Jersey state regulators, it seems like FanDuel has decided to finally pay up.
“A 36-yard field goal has approximately an 85 percent chance of success, so the astronomical odds offered on something highly likely to occur was very obviously a pricing error,” FanDuel stated. “These kinds of issues are rare, but they do happen. We want sports betting to be fun. So, this one’s on the house. We are paying out these erroneous tickets and wish the lucky customers well.”
It’s rough to see these kinds of things happen due to a glitch. The negative press and loss of faith in the entire industry are lamentable. The best solution is to find a way to prevent these kinds of occurrences to begin with.
Our dynamic odds system makes in-game adjustments and wagering on the fly simple and safe.
Smart contract based betting means that payouts are automatic, and that disputes, should they occur, are judged upon by a quorum of high reputation oracles. These oracles can and will include the regulators, and various other stakeholders in the BetProtocol network.
It shouldn’t have to take a pro-footballer’s tweet to convince an operator to pay up on bets that they took on their books. In BetProtocol’s ecosystem, a network of decentralised oracles will stake our native utility token to solve disputes when they arise. Voting takes place, and all of it happens totally transparently on the blockchain. Certain oracles will have different reputation scores based on their voting history, and identity. What is needed to solve a dispute is a quorum of high reputation oracles coming to consensus. Correctly resolving a dispute rewards all the contributing oracles with more reputation and tokens. Bad actors get punished by losing their staked tokens and being demoted in reputation score.
We want to bring more automation and accountability to the world of sports betting. Leveraging smart contracts and blockchain technology is just the beginning.
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Thanks for reading!