BetMGM Wins in Illinois as Dispute over Payout Rejected
BetMGM has emerged victorious in a regulatory dispute in Illinois after state officials sided with the sports betting operator in a case involving canceled wagers. The Illinois Gaming Board (IGB) ruled against a Chicago-area bettor, Mark Aiello, who had filed a complaint after BetMGM declined to honor what he believed were winning bets placed during the NCAA's March Madness basketball tournament.
LISTEN TO THIS ARTICLE:Aiello had placed a series of prop bets involving the performance of Chicago Bulls players, including specific totals for rebounds and assists. According to his calculations and the odds displayed at the time of his wager, he stood to win approximately $389,000. The bets were placed through the BetMGM mobile application, but were subsequently voided by the company prior to the start of the games in question.
Related: FanDuel Bans User Who Heckled Gabby Thomas at Track EventBetMGM informed the IGB that the odds offered on Aiello's wagers were the result of an error in its pricing system. The company cited an "obvious error of incorrect or inflated odds" and determined that the bets were invalid before any of the games had begun. As a result, no payout was made. Aiello later filed a formal complaint with the gaming regulator seeking compensation for the voided bets.
The board's investigation confirmed that BetMGM's odds had not been properly updated at the time Aiello placed his wagers. The regulator acknowledged that the mistake was due to human error, which was referenced multiple times in the board's final ruling. Nonetheless, the IGB concluded that such errors are covered under the terms and conditions of the sportsbook and, under state gaming regulations, render the wagers voidable.
Gaming consultant and attorney Elihu Feustel, who has written extensively about sports betting systems and legal frameworks, explained that the operator's action was permissible under contract law and gaming regulations. He compared the situation to a banking error, suggesting that when an obvious mistake occurs—such as being credited with far more money than intended—the transaction can be invalidated. In the context of sports betting, this same principle allows sportsbooks to cancel bets made at erroneous odds before an event takes place.
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Joy Turns to Frustration
Despite the legal rationale behind the decision, Aiello has expressed deep frustration with the outcome. He had intended to use the potential winnings for his daughter's college education.
Aiello noted that BetMGM's internal traders had reviewed at least one of the wagers and initially accepted it, which led him to believe the bets would be honored. He said he felt let down and argued that the company's mistake should not absolve it of responsibility to pay out some portion of the winnings.
According to experts familiar with sports betting law, had Aiello's bets gone through with corrected odds, the total payout would have been significantly lower—estimated at around $40,000. However, BetMGM has not made any indication that it will honor even this adjusted amount.
The company's cancellation of the wagers remains final, with the IGB upholding its position based on existing rules governing error disputes in regulated gaming markets.
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