Navigating Palpable Errors in Italian Sports Betting: Insights from DLA Piper Italy Experts
Exclusively provided for Gambling.Re, this article written by Giulio Coraggio, Partner, and Vincenzo Giuffré, Lawyer at DLA Piper Italy, delves into the intricacies of the recent Italian Gambling Authority's regulations addressing palpable errors in sports betting odds, offering invaluable insights into this evolving landscape.
The introduction of new Italian regulations regarding palpable errors in sports betting odds is poised to mitigate the frequency of conflicts arising between gambling operators and players.
Amidst the proliferation of disputes impacting the gaming sector, particularly in sports betting, the Italian Gambling Authority (ADM) has established precise procedures for identifying palpable errors in odds. Such errors occur when the odds associated with a specific outcome of a sporting event diverge inaccurately from the actual probability of that outcome, and the odds intended by the operator for that bet. Historically, Italian gaming authorities have held operators responsible for odds errors as part of their inherent business risk. However, this stance has encountered divergence in court interpretations. Nonetheless, ADM's recent clarification has prompted an increase in cases where players contest the cancellation of bets by operators.
In a bid to ensure equitable treatment and transparency for all stakeholders, ADM has now delineated comprehensive regulations for addressing such instances. Palpable errors in odds are defined as significant discrepancies in the odds presented in the operator's acceptance program, objectively identifiable by the player at the time of placing the fixed-odds bet.
The Italian Recognition Process Palpable Errors in Sports Betting Odds
Italian gambling operators can request the recognition of a palpable error in odds through a designated application provided by ADM, within three days of the last date indicated in the ADM system for verifying game offerings related to the event in question. The request must furnish detailed information regarding the event, bet type, and specific outcome for which error recognition is sought.
Failure to adhere to this deadline does not automatically mandate payment by the operator. However, it precludes the expedited resolution process outlined by ADM, potentially necessitating recourse to the courts. Non-compliance with this filing requirement may also unfavorably impact the operator's position in subsequent disputes.
ADM's Methodology for Detecting Palpable Errors in Sports Betting Odds
ADM employs specific methodologies to detect palpable errors in odds, contingent upon whether the error occurs prior to the event (pre-match collection) or during its progression (live collection).
For bet types with fewer than 20 outcomes, ADM compares the odds provided by the operator with a threshold value established by ADM. The existence of a quota error is certified if the weighted average value is less than or equal to the threshold value.
Conversely, for bet types with 20 or more outcomes, ADM certifies a quota error if the operator's incorrect quota exceeds four times the weighted average value. This process involves comparing the operator's odds with the weighted average odds from other licensed operators in the ADM system.
Operators bear the responsibility of furnishing documentary evidence of the error, including precise timestamps of the event and when the operator became aware of the error. Without valid documentary evidence, requests for error recognition are deemed inadmissible.
While this process may not fully resolve all disputes between operators and players, it signifies a positive step towards fostering fairness and transparency in the sports betting industry. ADM's criteria are likely to serve as a model for resolving disputes in other jurisdictions as well.