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Palpable errors in the odds are now at the centre of a new regulatory clarification issued by the Italian gambling authority, Agenzia delle Dogane e dei Monopoli (ADM), which sets out stricter rules for concessionaires when managing annulments of bets placed online and in retail betting shops.
The measure responds to a growing number of cancelled wagers justified by alleged pricing mistakes or technical malfunctions and confirms that payment obligations towards players remain the fundamental rule.
This intervention by ADM is highly relevant for the Italian regulated betting market. It clarifies how palpable errors in the odds must be handled and significantly limits the discretion of operators in cancelling bets after acceptance.
Palpable Errors in the Odds in Italy: A Clear Compliance Message from ADM
Under their licence and concession arrangements, Italian licensed gambling operators are directly responsible for the correct and timely payment of winnings and refunds. ADM acts as supervisory authority and may apply contractual penalties where payments are omitted or delayed.
In the context of online betting, the ordinary rule according to ADM is that winnings – even if deriving from palpable errors – must be credited to the player’s gaming account in accordance with standard procedures.
Where a palpable error in the odds is identified, Italian licensed gambling operators must follow the new procedure outlined in this article “New Italian Rules on Palpable Errors in Sports Betting Odds” i.e., a formal application must be submitted to ADM requesting recognition of the palpable error. ADM alone assesses whether the palpable error in the odds is substantiated, applying objective criteria defined in the above mentioned rules.
If ADM recognises the palpable error in the odds, the operator recalculates the winnings and credits the corrected amount. If ADM rejects the request, the operator must credit the amount calculated on the basis of the originally offered odds. Refund mechanisms cannot be used outside the limited cases expressly provided for by the gaming regulation.
A crucial clarification concerns litigation. Even if the operator decides to bring proceedings before the competent court, this does not suspend the obligation to credit the winnings. In other words, the presence of a disputed palpable error in the odds does not automatically justify withholding payment.
To mitigate recovery risks, concessionaires may temporarily block withdrawals of credited sums or suspend the gaming account under contractual provisions, provided that ADM is notified with a reasoned communication. The maximum suspension period is 180 days, unless ADM authorises an extension pending the outcome of judicial proceedings.
Payment first, dispute later. That is the practical effect of the new clarification.
Retail Betting Shops: Controlled Suspension of Payment
For bets placed in retail betting shops, the framework is partially different.
If operators submit an application for recognition of a palpable error in the odds, payment may be deferred until ADM completes its verification. If the palpable error in the odds is recognised, recalculation applies. If it is not recognised, payment must be made on the basis of the originally agreed odds.
Once betting slips enter payable status and the operator seeks to avoid irreversible payment, it must suspend payment and promptly notify ADM, providing detailed identification of the tickets involved. At the same time, judicial proceedings must be initiated to obtain annulment of the tickets or recognition of the palpable error in the odds.
Only upon receipt of proof of judicial action does ADM suspend the prescription period for payment at retail outlets.
This confirms that the suspension of payment mechanisms is strictly conditioned upon formal procedural steps and cannot be implemented informally.
Software Malfunctions and Technical Bugs
Beyond palpable errors in the odds, ADM also addresses annulments based on software malfunctions or unforeseen bugs affecting gaming systems.
Under the applicable Certification Guidelines, an irreversible hardware or software malfunction must lead to interruption of play, annulment of affected sessions and full refund of stakes at the operator’s expense.
However, Italian licensed gambling operators must demonstrate the actual existence of a malfunction. A comprehensive technical report must be submitted to ADM, describing the malfunction, the affected sessions, the players involved and the root cause analysis.
ADM may conduct audits, including with the support of its technological partner Sogei, before authorising annulment. If authorisation is denied, the operator must allow withdrawal of credited amounts or seek judicial recognition of the malfunction.
Pending ADM’s decision or a court ruling, credited sums remain on the player’s account. Withdrawal blocking or account suspension is permitted only within the regulatory framework and with proper notification to ADM.
Tax and Governance Consequences
At the conclusion of judicial proceedings, Italian licensed gambling operators must communicate court decisions to ADM to regularise accounting positions and, where necessary, recalculate the applicable gambling tax.
Palpable errors in the odds therefore have implications that go beyond player disputes. They affect internal governance, tax compliance, incident management and litigation strategy.
What to expect in the future
Palpable errors in the odds are not a new concept in the betting sector. However, the latest clarification from ADM significantly narrows the operational margin for Italian licensed gambling operators when invoking them.
Operators active in the Italian regulated market should review their internal procedures on odds setting, incident escalation and dispute management to ensure alignment with ADM’s expectations. In a market characterised by regulatory scrutiny and increasing player awareness, compliance is essential to protect both the licence and the credibility of the sportsbook operation.
On a similar topic, you can read the article “How to deal with palpable errors in sports betting odds in Italy?“. Also, you can read about the different gambling regimes in almost 50 jurisdictions in the DLA Piper Gambling Laws of the World guide.