'All of the bets were grayed out': Chicago dad’s $389,000 March Madness win vanishes when BetMGM cancels his payout over 'obvious error'. Here’s how to protect your winnings

This has happened to other people

The American Gaming Association has predicted a jaw-dropping $3.1 billion in bets this year on men’s and women’s college basketball, so it’s safe to say there was a lot of money on the line.

In Aiello’s case, he thought he was about to score big during a March 2 Chicago Bulls vs. Indiana Pacers game.

He placed four $500 bets on specific player rebounds and assists, hoping that a mix of six outcomes would land in his favor.

"350 to 1 is definitely like hard odds to hit, so it's unlikely," Aiello said. "Once the game was over, I was just, my heart was racing. I was incredibly excited."

But Aiello's bets were canceled right before tipoff as if he had never gambled at all, leaving him with no winnings.

"It's discouraging," he said. "It's confusing and it makes you angry."

Aiello’s situation isn’t an isolated one.

Kris Benton from Virginia experienced something eerily similar in 2023.

Benton had placed a massive $214,000 bet through BetMGM, only to see his payout voided hours later.

"They just kept, you know, spamming me with their terms and conditions about the 'obvious errors' clause," Benton told CBS News.

In both cases, BetMGM sent the same message: “These wagers were voided due to an obvious error.” The reason? “Obvious error of incorrect or inflated odds per the house rules.”

But Aiello was baffled, since he says at least one of his bets had been reviewed by a BetMGM trader before being approved.

"They took a look and said, yes, this is good to go, and then they didn't cancel them for seven hours," Aiello said. "So I'm wondering where the obvious error was."

Both Aiello and Benton say they never got a clear answer on what the correct odds should have been.

Benton went public with his story, speaking to Washington, D.C. CBS affiliate WUSA-TV, and just weeks later, a BetMGM lawyer reached out to him with an unexpected offer: the company would pay out his bets in full.

BetMGM didn’t provide a clear response when CBS News Chicago reached out, but they did confirm they submitted a report to regulators about Aiello’s complaint.

So, how do you ensure you’re not caught in the same unfortunate situation as Aiello?

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How to protect your winnings

Since sports betting and online gambling are regulated state-by-state, it’s critical that you navigate the rules and pick the right platform to protect your bets. Here are some best practices to follow:

Always use a licensed betting platform

Licensed sports betting apps are regulated by state authorities and must adhere to strict rules around fairness, transparency and accountability. States like New Jersey, with the Division of Gaming Enforcement, and Pennsylvania’s Gaming Control Board, have their own agencies that oversee gambling to make sure the platforms are legitimate.

Keep records of everything

This includes screenshots of your bets, transaction logs and confirmation emails for deposits or withdrawals. Most reputable platforms let you access your transaction history anytime. If things go sideways, this history is crucial for sorting things out. And, don’t forget to document any conversations with customer support.

Prioritize security

Set up two-factor authentication (2FA) on your account, use strong passwords and consider a password manager to keep your information secure. Stick to trusted payment methods like PayPal, bank transfers or credit cards, which typically offer fraud protection.

Understand the legal landscape

Sports betting is legal in almost 40 states, but the rules can vary. States like New Jersey, Pennsylvania, Illinois and Michigan have embraced it, but be sure to check the regulations in your state, such as age limits or tax implications, before you bet.

Always gamble responsibly

Many betting platforms offer self-exclusion or deposit limit features. If you feel like you’re losing control, these can help you manage your activity. For anyone struggling, there are resources like the National Council on Problem Gambling to lend a hand.

The excitement of a big win can quickly turn into frustration, and in some cases, like for Aiello, disappointment. So, it’s best to be careful where you put your money.