DraftKings Refunds Widow $106,000 in Deceased Husband’s Futures Bets

A Massachusetts widow petitioned the state’s gaming commission to refund her late husband’s futures bets on the hometown basketball team. DraftKings eventually obliged the request in what could be a precedent-setting ruling.

Demanding a Refund

Now and again, circumstances arise that are not covered by laws, rules, and regulations, which is why the Supreme Court exists to entertain unique cases, many without precedent.

Fortunately, an amicable resolution was reached in one such case without having to test the legal limits of the law, involving the widow of a gambler who bet over $106,000 in futures bets on his beloved Boston Celtics to win the Eastern Conference crown and NBA title.

However, it does beg the question as to why there is not more clarity on an issue that will undoubtedly arise again, whether in Massachusetts or any other state that licenses sports betting operators. It appears the state’s gaming commission has come up with a solution that mandates death, under compassionate review, can justify refunding futures bets.

This particular case was handled adroitly by the Boston-based bookmaker, handing the widow’s request directly over to the Massachusetts Gaming Commission (MGC) instead of deciding on its own accord. The MGC, citing regulation 205 CMR 238.35(2), which allows for voided wagers under certain circumstances, voted 5-0 to grant the petitioner’s request and have her late husband’s futures bets refunded to the estate.

Would Odds Have Changed the Outcome?

The bets on the Celtics were made before they rolled over the Orlando Magic in the opening round of the playoffs and were heavy favorites to beat the Knicks. Therefore, the tickets in the deceased man’s account had superior odds to anything that could be found when the action was taken to refund the money.

Weighing Fairness and Reputation

It was akin to cashing out early, but had the Celtics’ chances to win decreased, would DraftKings have been as eager to put this decision in the hands of an arbiter? That’s not to say they wouldn’t, but less scrupulous sportsbooks may have weighed the odds and allowed that analysis to guide their actions.

DraftKings has the distinction of being one of the most popular sportsbooks in the nation, which means its reputation as a trustworthy and reliable partner to its customers is paramount. In the relative scheme of things, $106,000 is a pittance compared to the irreparable damage that could have been done to its reputation if word leaked that it was hamstringing a widow from receiving money that her late husband bet on ungraded futures.

Outcome Favors Widow and Company

Ultimately, it worked out well for the widow, as the Celtics lost to the New York Knicks in six games, which would have rendered those futures as losing bets. Meanwhile, DraftKings enhanced its reputation and continues to expand its footprint in the US and Canada.

According to a recent earnings report, DraftKings is live with mobile sports betting in 25 US states and Washington, DC, which collectively represent approximately 49% of the U.S. population. The company is also operating iGaming in five states, representing approximately 11% of the U.S. population, and is live with its sportsbook and iGaming products in Ontario, Canada, which represents approximately 40% of Canada’s population.