A Betting Company Gives Early Payout on Labour to Win and Loses £540,000 for the Wrong Result
The craziest thing happened to the betting company Sportsbet in Australia. The company made an early payout for the wrong result, giving over £540,000 (AUD 1 million) to those who placed a bet that the opposition Labour Party would win. The payout for the political bet was complete two days before the election and was based on the polls that widely predicted a win by the Labour Party for the first time in six years.
The Wrong Result that Caused Sportsbet a Massive Loss
Sportsbet was convinced, after seeing that polls predicted that the opposition Labour Party would win, that it should give those who voted for the Labour to win an early payout. However, when the voting ended in Saturday and all the votes were counted, the results showed that the conservative, Prime Minister Scott Morrison was projected to win the majority.
When the results came in, Sportsbet shared with its fans on social media about the blunder. They commented that that didn’t go well, because they have paid out early on Labour to win. To make matters worse, the operator admitted that in addition to losing £540,000 on the wrong result, they also had to pay out money to those who guessed right and placed a bet on Scott Morrison’s Liberal-National Party to win. They also announced this on Twitter.
A spokesman for Sportsbet shared that 70% of the cash that was stacked on the elections before the early payout came from Labour bets, so the punters called the election early. The operator thought that they would simply give them their winnings early, but as it turned out, they were terribly wrong.
How Could This Even Happen?
The thing is, whenever they are certain of the result, bookmakers tend to pay out their punters early. Most of the time, this is when they are certain of the result and want to avoid more punters placing trickier bets.
Plus, if you thought that this was the first incident, you’re deadly wrong. As a matter of fact, Paddy Power has paid out around £790,000 to those who bet that Hillary Clinton would win the USA elections, a month before the actual voting took place. In addition to paying that huge amount, they also had to eventually pay those who bet on Donald Trump, so they had to pay additional £3.53 million. Of course, these are bookmakers who are not that affected with these kinds of losses, and that’s why they take the risk of paying out earlier than the results come in.