Sporty Bet: Not so sporty response to customer complaints against unilateral freezing of accounts

Two years ago, April 2024, to be precise, Sporty Bet decided to freeze the accounts of some of its customers, on the allegation that winnings in the affected accounts were influenced by automated software programs. The affected customers disagreed. They claimed the rules guiding the game were strictly adhered to, and that the company had no reason for taking the step it had taken.

To prove their innocence and seek redress, the affected customers  filed petitions with relevant security and regulatory agencies, with the hope that the action would make the betting company rescind its decision and grant them access to their funds, grown over the  period.

Interestingly, till date, their hopes of having access to those funds, put at between N900m and N960 million, appear to be fading by each passing day.

Perhaps more curious is the silence maintained by the regulatory agencies, the affected customers had earlier petitioned, in the course of seeking justice.

The victims had filed petitions with the Economic and Financial Crimes Commission (EFCC), the Police Special Fraud Unit, the Force Intelligence and Investigation Department, the Federal Competition and Consumer Protection Commission (FCCPC) and the National Lottery Regulatory Commission (NLRC), with that simple prayer: “Allow us to have access to our funds, grown legitimately over the years”.

But, till date, such prayers are yet to be answered, and market watchers believe the company’s followed a pattern of  unheeded prayers, experienced by customers with similar issues, in the past, and  which, unfortunately, they fear might be unsavoury for the nation’s betting sector.

For instance, not too long ago, there was the report of a certain Anthony Anozie, who had been using the platform, since 2023, and had complained he was locked out, after he had grown his account balance to nearly N18 million, through successive wins.

According to him,  despite acceding to repeated requests for documentation, including his international passport, from the company, his account was never reopened.

Another customer, Aleke Esther, also had her fair share of sad story to tell. She also submitted her bank statements, as requested by the Sporty Support Team, only for her account to remain frozen regardless, till date.

Interestingly, while many, including the affected customers believed in the sanctity of rules and regulations, such rules, they reckon, should apply transparently, and across the board for both the customer and the owners of the betting platform.

For instance, the common concern, among the aggrieved customers, is that instead of giving the much-needed assurances, promises or even updates,  Sporty Bet has been taking different routes,  a posture that  has continued to draw flaks from the aggrieved customers, who argued the company’s action was meant to ‘harass’ them into submission.

For instance, the company decided to go to a Lagos High Court, to seek a permanent order, to silence the affected customers until its own preferred investigation was concluded. The suit was however dismissed on 15 November 2024, by Justice D.T. Olatokun.

Besides, the announcement by the betting company that it had gone into a partnership with the  EFCC, with the aim of fighting fraud in the ecosystem, was also seen as corroborating the affected customers’ claim about the reluctance of the company, not to engage them.

It becomes disturbing when a party to a petition announces a partnership with the investigating government agency, and makes nonsense of the expected neutrality of the affected agency

The Bone of Contention…

The affected customers are pained by the decision of Sporty Bet and relevant regulatory bodies to keep mute, more than two years after funds were frozen.

According to their solicitors, Kunle Bamidele of Prolex Solicitors, till date  there has been no resolution, regarding the frozen funds, while the relevant regulatory bodies, have continued to keep mute, despite being petitioned on the issue.

The Question

The question the public would want answered is whether the funds are legitimate winnings, being wrongly withheld, or proceeds of manipulated accounts, rightly flagged?

Interestingly, none of the actions so far taken by the betting company seems to have resolved the question, nearly two and a half years after the accounts were first frozen. More worrisome to many, is the continued silence of EFCC and NLRC, the only bodies with the power and authority to answer such a question, and also give reasons they haven't acted.

It is curious that a party to a petition is insisting on conducting the investigation by itself nd regulatory agencies are sitting on their hands while such a breach happens. Who hs ever investigated an issue it is involved in as an accused?

Implications for the $3.6b industry…

The implications are huge for an industry estimated at over $3.6billion (over N730billion), annually, in Nigeria.

For instance, the development, many have pointed out, is capable of shaking the confidence of about 65 million Nigerians, actively engaged in sports- betting and online gaming, since it is an ecosystem that thrives on trust.

Besides, being one of the industry giants, alongside others such as Bet9ja, 1xBet and BetKing, its actions might be taken to be the industry standard, a mindset that may send negative signals to other  patrons and industry.

Unfortunately, the silence maintained by the betting company, and the regulatory agencies, saddled with the responsibility of overseeing activities in the sector: the  NLRC and state level boards, may continue to thin out the huge number of prospective investors, who would ordinarily have loved to throw their hats into the ring as far as the sector is concerned.

That the question still sits exactly where it has been since 2024 when the accounts were first flagged, is without doubt a huge negative to an industry, capable of being one of the game changers for the nation’s dwindling economic fortunes.