Iowa Bettor Sues DraftKings Over Not Paying Out $14 Million Parlay
Nicholas Bavas, a 37-year-old Iowa resident, has initiated legal action against DraftKings following the company’s decision to void a substantial 20-leg parlay placed on the Pebble Beach Pro-Am in February of last year.
Bavas invested $325 in wagers on a Saturday night, betting that the final leaderboard would reflect the standings at the end of the third day of play. However, due to inclement weather that forced the cancellation of the final round, DraftKings subsequently declared the bets invalid. The unfavorable conditions had been anticipated from the close of Saturday’s play, yet DraftKings left their market active, leading Bavas to place four identical bets on various outcomes including the winner, top five finishers, and top 20 placements, alongside an additional bet on the top 20 in no particular order. The potential payout for these bets was an astonishing $14,204,781.77.
In a detailed 39-page complaint, Bavas asserts, “The leaderboard of the top 20 golfers at the conclusion of play in the Tournament is not in dispute.” His argument maintains that all of Bavas’s bets should therefore be considered winners.
Changes in DraftKings’ Betting Rules
DraftKings contends that its rules stipulate the invalidation of bets due to the cancellation of the final round. However, it is crucial to note that these rules were updated only after Bavas had placed his wagers, introducing new terms that state, “In the event there is a reduction in scheduled rounds played, bets placed on any market will be void if… the bet(s) are placed after the final shot of the most recently completed round.”
Previously, the rules specified that any PGA Tour tournament bets would be valid, provided that players completed at least 36 holes. Bavas’s legal complaint includes screenshots illustrating the timeline of these rule changes, clearly indicating that Bavas’s bets should have been upheld based on the prior regulations when they were placed.
Demanding Accountability from DraftKings
Bavas’s attorney, Darren Kaplan, expressed concern over DraftKings’ lack of clarity regarding their decision to void the bets, stating, “They didn’t really give an explanation.” Co-counsel Benjamin Lynch added, “He placed a valid bet and DraftKings needs to honor it.” This situation has resonated with other bettors as well; one user shared their bet receipt on social media, revealing a $20 parlay with a staggering potential payout of $755,415.17.
This legal challenge is not an isolated incident for DraftKings; the company is also facing litigation in Indiana regarding a bettor who successfully placed a 7-leg parlay valued at $150,000 on an NBA match between the Los Angeles Lakers and the Denver Nuggets. In this case, DraftKings cited an apparent error in the odds as justification for refusing payment.
Moreover, the company is embroiled in a lawsuit with MLB players over unauthorized use of their images on the DraftKings website and associated social media platforms. Legal proceedings recently took a turn when a court rejected a motion to dismiss the case, highlighting the growing scrutiny the organization faces.
The outcome of these lawsuits could have significant implications for DraftKings and the broader landscape of online sports betting, underscoring the importance of transparency and fair play in the gaming industry.
As this situation develops, it remains essential for stakeholders, from bettors to regulators, to engage critically with the evolving landscape of gambling laws and operator practices to ensure consumer protection and industry integrity.
