A South African court has ordered more than 100 online bettors to repay approximately R13 million (approximately US$750,000) after they exploited a flaw in an online game on the Hollywoodbets platform. A Pietermaritzburg High Court ruling found that the users, who placed bets in BetGame’s game “Instant Lucky 7”, were able to win payouts without risking any stake because errors in the system prevented bets from being deducted.
Investigations revealed that an outsourced developer responsible for maintaining the “Instant Lucky 7” lotto gambling game failed to ensure the correct deduction of stakes from player accounts when they placed bets. As a result, punters were able to participate in draws “for free”, placing no cost on acquiring numbers while still receiving winnings when their results came up.
The anomaly was flagged after Hollywood Sportsbook’s monitoring systems noticed unusually high levels of winning. Within just over a week, more than R13 million was paid out. In one notable case cited by the judge, a player placed about 40 bets and walked away with R443,700, which they withdrew into their bank account.
Hollywood Sportsbook initially contacted the winners and requested that they return their winnings. Nearly all refused, prompting the company to take legal action. In court, the bettors argued they hadn’t acted unlawfully, and claimed that freezing their accounts had caused them financial harm, such as failed debit orders and damage to their credit records.
Respondents filed largely standardised affidavits, differing mainly in their claimed winnings, account statements, and time played—but not contesting the core facts regarding the flaw. The court found that while Hollywood Sportsbook’s claims of fraud or collusion were not substantiated—because the individuals were geographically dispersed and not connected in any orchestrated scheme—they had nonetheless knowingly exploited the defective system.
The Pietermaritzburg High Court ruled in favour of Hollywood Sportsbook. Since the wagers placed through the flawed game were found to be invalid, the corresponding winnings were not legitimate and must be returned. All 104 identified respondents have been ordered to repay their ill-gotten gains.
Regarding the banks involved (including Capitec, FNB, Absa, and Standard Bank), the court noted that some accounts were frozen after an interdict was granted. However, the freezing was broadly applied—blocking all transactions—rather than being limited to the amounts owed. The judge criticised this approach, stating the freezes should have been more precisely targeted. Despite this, the order to repay stands.
This ruling sends a strong message to online betting operators and users alike: platform flaws—even when originating from third-party developers—can carry serious legal and financial consequences. It also emphasises the importance of robust internal controls to detect and limit unintended payouts.
For punters, the case shows that “winning” due to system errors doesn’t offer legal immunity.
