No. 3-seeded Purdue narrowly missed pulling off an upset against No. 1 Virginia on Saturday. The Boilermakers entered the game as a 4.5 point underdog, yet led by 10 midway through the first half. But a last second jumper by the Cavalier’s Mamadi Diakite tied the game 70-70 at the end of regulation, and the Boilermakers then saw their NCAA tournament run end with an 80-75 overtime loss.
Purdue’s players might remember this loss for a long time, but some bettors who picked Purdue only carried that losing feeling for one day. New Jersey sports betting app PointsBet issued a full credit refund on Sunday to everyone who had bet on Purdue on both the moneyline and point spread.
“The Karma Kommittee ultimately viewed that for Purdue not to win or cover the +4.5 spread was a bad beat of incredible magnitude. We simply had to rule on the side of Good Karma,” said Johnny Aitken, PointsBet CEO, in a Tweet posted Sunday morning.
Those bettors won’t receive cash back, but they will receive a bonus payout in the amount of what they originally bet. That can be put towards additional wagers on PointsBet’s online betting platform. On the surface, this tactic looks like an effective way for PointsBet to establish itself in a crowded New Jersey sports betting market.
Legalized sports betting has led to an ultra-saturated market in the state, which is likely on its way to securing its place as the country’s second-biggest sports gambling market behind Nevada. PointsBet is one of 13 companies already offering legal online sportsbooks in New Jersey according to Legal Sports Report.
PointsBet’s “Karma Kommittee” has issued what the company calls “Good Karma Payouts” on several occasions since the Australian sportsbook launched in New Jersey this past January. That includes refunds after the New Orleans Saints lost the NFC Championship Game to the Los Angeles Rams on a missed penalty call, and following Central Florida’s 77-76 loss to Duke in the NCAA Tournament.
When Duke’s Zion Williamson sustained an ankle injury in the early seconds of February’s Duke v. UNC game, PointsBet issued bonus bet refunds to all Duke spreadline and moneyline bets, and booster bets involving the Duke star. The sportsbook also offered $100 bonus bets to fans who backed Duke via other sportsbooks, on the condition that they signed up for the PointsBet platform as a new user.
The company’s refund policy seems to be a way to garner publicity and to help itself stand out amongst competitors. Though rewarding losing bets is sure to be hurting PointsBet’s pockets in the short-term, if karma works out, the sportsbook could benefit in the long run.