- The court found bets placed on the faulty Lucky 7 game were invalid, and winnings must be repaid.
- Hollywoodbets won the case despite its technical failure.
- Gamblers were frustrated as frozen bank accounts caused financial strain.
The KwaZulu-Natal High Court in Pietermaritzburg has ruled that more than 150 people who won money through a faulty online game hosted by Hollywoodbets must repay their winnings.
For just over a week in December 2023, Hollywoodbets offered a game called Betgames Instant Lucky 7. The company described the game as “similar to the lotto” and allowed players to select numbers in rapid draws every 30 seconds. But there was a major flaw in that bets were not deducted from players’ accounts. This meant gamblers could play without risk and still get payouts if they won.
Within days, over R13 million in “winnings” had been collected by hundreds of players across the country. Some deposited small amounts, as little as R50, and walked away with hundreds of thousands of rands. Others won more modest amounts, such as R3 000.
The human cost of frozen accounts
When Hollywoodbets realised what had happened, it froze withdrawals and rushed to court. The company obtained an interim order to freeze players’ bank accounts and directed banks like Capitec, FNB, Nedbank, Absa, Standard Bank, and others to hand over details of the affected accounts.
For many players, this order had devastating consequences. They told the court that debit orders bounced, their credit scores were damaged, and they could not access funds unrelated to the disputed winnings. Some argued they had done nothing wrong and had simply played the game and withdrawn their winnings.
"I only bet with funds I deposited and then with what I won," one player said. "I didn’t break any rules."
Court says wagers were invalid
Judge J Mossop noted that the fault lay with the company’s game design but determined that the placed bets were not valid under the law. For a valid wager, there must be consideration (money paid to enter) and risk (the chance of losing that money). Because of the glitch, no deductions were made, so players gambled without paying and without risk.
This meant the winnings did not legally belong to them. Hollywoodbets’ terms and conditions also clearly stated that any money received due to an error must be repaid.
The court rejected Hollywoodbets’ claim of a fraud conspiracy among players, saying that no misrepresentation was made by them. Instead, the judge emphasised that the company’s own systems were responsible. Still, the law required repayment.
A reluctant victory for Hollywoodbets
Judge Mossop criticised the harsh interim order that froze all transactions in the affected accounts, stating it unfairly hurt players. Some may have lost access to money that belonged to them and was not related to the disputed winnings. He also highlighted that the lack of notice before money was seized raised fairness concerns.
Nevertheless, the court upheld the order against dozens of players, requiring them to repay the winnings. “The applicant has achieved its aim and has been successful, despite ultimately being responsible for the issue in the flawed game,” Judge Mossop said, adding that Hollywoodbets was entitled to its costs.
Conviction.co.za
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