The popular feature among online bookmakers, “early payout”, is under fire.
The Kansspelautoriteit (Ksa) has addressed multiple providers regarding unclear information about early payout. Players could be led to believe that a bet on a draw was also paid out early, whereas this is not the case.
This concerns sports betting where a player receives their winnings as soon as their team is two goals ahead during the match. That payout then follows immediately, regardless of the final score. However, in the event of a draw, such a lead cannot exist. Yet, according to the regulator, it appeared as though that option applied there as well.
Early payout sounds more attractive than it is
The early payout feature is popular in online sports betting. If a team is two goals ahead, the provider considers the bet won. Even if the opponent makes a comeback later in the match.
But there is a trade-off. The odds for this option are lower than for a normal bet. Players thus sacrifice potential winnings for more certainty during the match.
The problem arose with bets on a draw. Providers also showed lower odds there under the heading early payout. The terms and conditions did state that this possibility does not apply to a draw, but according to the Ksa, this was not always clearly visible when placing the bet.
Unclarity can lead to wrong expectations
The Ksa states that providers are obliged to give clear information about all possible outcomes and associated conditions. This is essential in a market where money is directly at stake.
When players think they can also be paid out early in the event of a draw, while that is factually impossible, confusion arises. This affects the trust in the provider and in the regulated market as a whole.
The Ksa has spoken to the parties involved about their communication. They have since adjusted their information, making it clearer that early payout does not apply to bets on a draw.