DJ Esports Allegedly Scam Users Out of Money
A Youtuber that goes by the name of Fragger has alleged this week that DJ Esports is a complete scam. In their video, they claimed to have been scammed out of £55k – 1.1 – 1.2btc, and the video maker’s friends were also scammed. This total allegedly comes out to more than £300K. That is a serious amount of money to be out if this is true. He goes into detail about the site and says that these problems only affect people who win on the site. The casual bettors likely won’t even notice there’s anything shady going on.
It’s incredibly important to bet safely if you’re going to at all. If this is true, DJ Esports has changed some policies and rules to scam bettors, preventing them from getting the money they won. Given that this is in the cryptocurrency space, there isn’t a whole lot that can be done for those who have been scammed. Perhaps people in America could go to the Federal Trade Commission at best if the user had information and the transaction IDs.
So what does Fragger have to say about the matter? You can watch his full video with all of the logs here.
What Is DJ Esports Doing?
DJ Esports is an esports betting website, which does exactly what you think it might. According to Fragger, he received – and showed – an email that says his account was “exploiting Tier 2 & 3 matches to turn a profit.” Fragger claims this only means he was “betting” on these matches, and did not bet on any matches that were rigged or fixed. He was just heavily betting on the Tier 2 and 3 matches. According to the email, taking your winnings and betting on Tier 1 matches is not allowed under their guidelines, and they were banned.
Fragger alleges this was not in the TOS he looked at when going to sign up originally, and the “guidelines” were only a day old. The key in this email is that he is being welcomed to make a new account, and “rebuild a Tier 1 portfolio with our new guidelines.” The key is “new guidelines”. After Fragger and his friends started making money, the guidelines were changed, and they were punished.
Fragger also showed his conversations with the Compliance Manager and more, showing that he received nothing but blanket statements, and ultimately will not get the money he was supposed to have won. He received a fifth of it at best. In his messages, he also states he has full screenshots of the ToS, showing that he has been done wrong by DJ Esports. The long and short of it is that he (and others) will not get paid what they are owed, because the rules were changed on them.
A Tier System, And Red Flags
According to Fragger, there’s a “Tiering System” at DJ Esports, and he explains how exactly it works. It sounds like it’s a pretty serious mess, and it sounds like a system to ensure nobody can withdraw their money. You cannot view their TOS unless you log into the website. The video recorded that shows the ToS was recorded on the 24th of October, and he shows on the screen as proof that if they edit it further, this is what it looked like at the time. Fragger talks about the constant use of language that says they want to avoid cheating, colluding, etc. The way it sounds, according to this Youtuber, is that DJ Esports feels most Tier 2 and 3 games are rigged.
DJ Esports has three tiers, and it says in the TOS that “players can take steps to build a more diverse betting portfolio” to avoid triggering the Risk Compliance System. When talking about the tiers, they only discuss League of Legends – Not CSGO or DOTA. So it sounds like these games aren’t tiered, at least, in the wording of the TOS. Fragger also states that him and his friends only bet on CSGO/DOTA, so it shouldn’t fall under this “tier structure”.
In the TOS, DJ Esports states that betting exclusively on Tier 3 games can run the risk of triggering Risk Compliance, so they want you to build a “diverse betting portfolio” and have the majority of your matches placed on Tier 1 bets. This doesn’t even mention Tier 2 either. The TOS does not have a specific percentage of bets that need to be Tier 1 to avoid getting banned either, which is a pretty scary red flag. Especially when you’re betting potential large sums of money.
However, on the official Discord, and in DMs, the statement is that you need 80% Tier 1 matches – a staggering number. Again, no DOTA or CSGO matches are listed in the TOS. DJ Esports has been shown to have added on October 22nd their Compliance Information. This is information that should have been around from the start. This way, they can also show they have the proper percentages while delaying payments to bettors.
This feels like yet another dangerous red flag on the part of the sportsbook. This information should be upfront and easy to access, on the website. Not simply on the Discord. According to Fragger, by the time he was made aware of this tier system, he had already made nearly 2 Bitcoin on the site, and already had quite a bit of Bitcoin in the system.
Apparently, this doesn’t affect losing customers. Only customers who are winning. The example he gave would be a user who only bets on Tier ⅔ matches because he follows his local scene. This person makes a few grand, but now suddenly the site says they can’t withdraw. They aren’t betting on Tier 1 primarily – since this user doesn’t have Discord, they have no way of knowing. It’s incredibly unfair to not give people who simply use the website all of the information, especially when gambling.
Fragger checked the TOS before using it, and they didn’t list CSGO for the rules at all, so he thought nothing of it. Nothing seems clear, and the responses given to users are just as flimsy and unclear. In the example created, someone who has made 150 Tier ⅔ bets would have to make 825 Tier 1 bets to just cash out anything they have won. Nothing about that feels responsible gambling – unlike what the TOS states.
The red flags continued for Fragger, where he shows a Discord conversation where he was sent the “wrong person’s payout”. The Youtuber offered to send it back, or they could send the remaining he was supposed to receive. He sent the mbtc back as is their standard procedure. He cannot withdraw his money, since he hasn’t hit this sudden 80% Tier 1 betting. Then he was banned. A few days later, he could log in, but his ability to bet was seriously reduced – ultimately, he was banned again. It’s a series of pretty serious red flags from this company.
Is This a Problem? It Does Sound Like It
Fragger continued to show conversation logs from moderators and users of DJ Esports, who have said that the CEO makes all the decisions and that he doesn’t want to payout. According to people who work on the CS team for DJ Esports, they don’t agree with these compliance problems, and that’s where we learned it’s the CEO that’s making these choices. That person was not included in the video, to avoid getting them in trouble.
He also said he’s willing to share some of those logs with people who are sponsored/promoting DJ Esports but doesn’t want them to be public. DJ Esports has quite a few prominent people in the esports community that they sponsor as well. Thorin, MonteCristo, Dexerto are among the big names that promote DJ Esports. While we cannot say for certain that any of this is true, it’s absolutely a topic worth discussing. Quite a few people, according to the logs of Fragger say they were scammed, and aren’t going to get a payout from.
It sounds like Fragger took quite a bit of care to get as much information as possible before betting on this site, but it still turned to look like DJ Esports would scam him. It’s unfortunate that so much money has potentially been scammed out of users. Since the betting is done with cryptocurrency, there’s no real moderation for that. The people that get banned and lose out on money can’t really do much about it. It doesn’t make sense that these accounts are being banned too.
Instead of letting users start betting on Tier 1, they instead get banned, get their ability to bet reduced, and then ultimately banned again. Nothing about this website makes sense, and the further you go into the video, the shadier it seems. They were very quick to create hurdle after hurdle and then ban the user. The website information isn’t the same as the Discord site, and it doesn’t sound like everything is above board here. We will keep you up to date on this story as it develops though.