Online betting exchange Betfair has released a statement regarding the voided bet fiasco during the Christmas Hurdle race at Leopardstown in December in which it will compensate some bettors.
The issue was caused by a technology glitch and has caused a public relations nightmare for the UK based company. Steve Morana, Betfair's Interim CEO said that the company has received a lot of damage to its reputation. Financially the company has taken a hit with stock prices tumbling after the debacle.
As a way of showing that it is working to improve its reputation and trust with clients Betfair has agreed to will compensate some punters in certain betting categories.
The statement by Betfair read:
"Since the 2.00pm race at Leopardstown on 28 December 2011, we've looked in detail at all the circumstances surrounding the technology failure and the anomaly it created. In addition, we provided our Gibraltar regulator, the Gibraltar Gambling Commissioner (GGC), with a detailed technical and operational report on the incident and the GGC made a number of recommendations. We have also consulted with customers and taken their feedback on board."
"Accordingly, we have reviewed our decision to void all in-running bets matched on the race and, in the interests of fairness, certain categories of voided bets will be compensated by way of ex gratia payments from Betfair. This compensation complies with, and goes beyond, the GGC's recommendations."
"The categories of bets that will be compensated are:
In-play winning positions in both the 'win' and the 'to be placed' markets which were achieved before the technology failure; and
In-play winning positions in the 'to be placed' market achieved at any time through to the completion of the race
Bets matched in the 'win' market after the technology failure will remain void."
"We would like to take this opportunity to thank our customers and the GGC for their feedback in helping us to achieve what we believe to be a fair conclusion to this unprecedented incident. We remain committed to providing our customers with the best betting proposition possible."