By Gina McKlveen
Approximately two-thirds of the United States have legalized sports betting since 2018, after the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). As of August 2022, according to the American Gaming Association, Massachusetts became the 36th of the 50 states to pass a sports betting law in their state. With[MC1] sports betting and other online gambling reaching new heights, increasing usership, and garnering wider support across the nation, ensuring that gamblers and sports bettors are informed on the house rules is particularly important for the transparency of games being played and the integrity of the gambling operators.
In fact, Buisier v. R.I. Division of Lotteries, a case arising out of the Superior Court of Rhode Island, decided this past May, between a sports-betting plaintiff, Buisier, and several gambling operator defendants, including the Rhode Island State Lottery Division, addressed the predominating effect of following the most recent house rules when a dispute arises. The plaintiff, who purchased multiple sports betting lottery tickets from the defendants, had two winning tickets. However, by the time the plaintiff went to claim his winnings, the two tickets were accidently destroyed and deemed unreadable. In attempt to collect his winnings, the plaintiff sought to exhibit photos he had taken of the tickets prior to their accidental destruction as photographic evidence of his winning tickets. In doing so, the plaintiff was unknowingly relying on outdated online rules that said a customer could collect his winnings without presenting the actual ticket, offering a remedy for tickets that were lost, stolen, or unreadable so long as the customer making the claim could verify his ownership of the tickets. Since the house rules that were posted online were outdated, the defendants refused to pay the plaintiff for his winnings. The defendants cited the updated, and most recent House Rules posted in May 2019, which provided that the actual physical copy of the ticket must be presented in order to collect the winnings and did not permit a customer to claim his winnings through any reproductions like a photograph.
The plaintiff subsequently sued the defendants alleging several legal theories including unjust enrichment, breach of contract, contractual breach of the implied covenant of good faith and fair dealing, tortious breach of implied covenant of good faith and fair dealing, and contractual bad faith. The defendants made a motion for a judgment on the pleadings for plaintiff’s failure to state a claim. Ultimately, the court sided with the defendants, dismissing all the plaintiff’s claims. The court held that the updated house rules, which carry the force of state law, govern the parties’ actions. Consequently, the defendants were not required to pay the plaintiff. The plaintiff was bound by the house rules.
Given the weight and importance the court paid to the house rules in this case, operators should take special efforts to review and update their house rules to ensure the rules reflect current practices and procedures.
What are house rules?
House rules is a gambling term that describes a set of rules listed in the sportsbook of a gambling operation company that determine the general and/or specific parameters for play.
House rules may also be applied to each individual sport so that there are rules for football, baseball, basketball, and any other games offered by the gambling operator.
How do house rules relate to online gambling terms and conditions?
House rules tell players the rules of the game and rules of operation of the gambling company while online gambling terms and conditions spell out the relationship between the company’s sportsbook and its players.
An example of a house rule would be setting an age requirement, or showing proof of government ID to wager or collect winnings. An example of a term and condition would be who is responsible for what and in what circumstances, like an arbitration clause.
In other words, terms and conditions are the legal rules for instance like determining liability, venue, waivers, warranties. And the house rules are the playing rules like jokers are wild, must be 21 years old to place a bet, etc.
How are house rules enforced?
As described in Buisier v. R.I. Division of Lotteries, house rules may operate as state law. It is the customer’s responsibility to review the house rules for updates and any material changes to the terms and conditions. A customer may accept these changes by continuing to use the gambling or betting services.
[MC2] Are house rules required by state regulators?
Just as each state can decide whether or not to permit sports betting in their jurisdiction, every state that legalizes sports betting can establish its own rules and regulations related to sports betting. A state can require the adoption and posting of house rules for gaming operators in the state. [MC3]
What do States require for their house rules?
While a majority of states in the country have passed sports betting laws, this does not mean every state has the same laws and regulations governing their house rules, although there are certainly similarities between the various jurisdictions.
To illustrate with a few examples, the Commonwealth of Virginia, for instance, which passed its sports betting law in 2020, states that house rules within its jurisdiction shall include the following: (1) a method of calculating the winnings of wagers, (2) the effect of schedule changes, (2) a method of notifying players of odds or proposition changes, (4) means of acceptance of wagers in ways other than those posted, (5) a method of contacting the operator or “permit holder” for questions and/or complaints, (6) a description of individuals who are prohibited or restricted from placing wagers, (7) a method of funding a wager, and (8) a description of all types of wagers that may be accepted. Additionally, Virginia’s law also plainly states that house rules shall be readily available on the permit holder’s website and mobile applications.
Conversely, the Commonwealth of Pennsylvania, which legalized sports betting in its jurisdiction back in 2017, has a slightly different approach to its laws on house rules. Specifically, the relevant Pennsylvania law indicates house rules within its jurisdiction “must include, but [are not] limited to: (1) the types of wagers accepted, (2) how winnings will be paid, (3) the effect of schedule changes, (4) the redemption period for winning tickets, and (5) the method of noticing odds or line changes.” Pennsylvania’s laws, while clear, are less stringent than Virginia, leaving more room for additional rules to be accepted or added later given the language “not limited to” regarding the non-exclusive listed inclusions previously mentioned.
But like Virginia, Pennsylvania also requires that operators make house rules “immediately available to patrons at a licensed facility onsite, online, and mobile application sportsbooks.”
Similarly, the State of Maryland emphasizes the importance that an operator’s house rules are available and accessible online. The law in this jurisdiction reiterating its neighboring states’ legislation by stating an operator “shall ensure that its house rules are: (1) conspicuously displayed in or immediately adjacent to its wagering location, (2) posted on its website, (3) included in the terms and conditions of use on its sports wagering platform, and (4) in hard copy, readily available to bettors.” However, under Maryland’s law, house rules on the method of funding a wager or description of all types of wagers that may be accepted, for example, are noticeably absent.
Evidently, as the laws of these states and the outcome of Buisier v. R.I. Division of Lotteries make clear, ensuring that the most recent, up-to-date version of an operator’s house rules are posted online is a crucial component to good sports betting practice.
