In a significant legal ruling, the KwaZulu-Natal High Court has ordered more than 100 individuals to repay winnings totaling over R13 million after they exploited a flaw in an online betting game run by Hollywood Sportsbook. The case revolves around the “Betgames Instant Lucky 7” game, which ran for just over a week from December 22 to December 31, 2023.
The flaw and exploitation
The flaw in the game was a technical error made by one of Hollywood Sportsbook’s outsourced developers. This error caused bets placed by players not to deduct money from their accounts, effectively allowing punters to gamble for free and at no financial risk. Despite not paying for the bets, players could still win and collect winnings, leading to unusually high win amounts totaling over R13 million within that short period. Individual winnings ranged from R3,000 to as much as R443,700.
Legal proceedings and court ruling
Hollywood Sportsbook sought the return of these winnings after discovering the anomaly through its monitoring systems. When most players refused to repay, the company took the matter to court. The High Court ruled in favor of Hollywood Sportsbook, stating that the wagers placed without payment were invalid, and thus the winnings were not legitimately earned. Judge Robin George Mossop emphasised that valid wagers require payment and risk, both absent in this case due to the game’s flaw.
Impact on banks and account freezes
The ruling also affected several major South African banks—including Capitec, FNB, Absa, and Standard Bank – that were ordered to freeze accounts linked to the winnings. However, the court acknowledged that freezing entire bank accounts was excessive, suggesting holds should be limited to amounts owed.
No fraud found, but winnings must be returned
Despite the company initially alleging fraud and collusion among these players, the court dismissed these claims, as the players were scattered geographically and had no established relationships. Nonetheless, the winnings were ruled as money won from invalid wagers and had to be returned to Hollywood Sportsbook.
This case highlights the vulnerabilities online betting platforms can face from technical flaws and the legal implications for players who exploit them. It also serves as a warning for punters about the expectations of lawful gaming practices and the risks of attempting to benefit from system errors.
