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Books like these don't grade wagers in real-time or even necessarily keep track of scratches. They even warn you not to past post (because it is "allowed" from a technical standpoint) or will you get your account canceled. Bets after a certain time each evening are not graded until the next day...
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Game Theory is, as usual, spot on with his assessment.
It is a very common condition in the rules of bookmakers.
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Here's what i don't get.
Since this is not a pari mutuel book, they can essentially just "not pay" if there are any "irregularities". So, why not just permit betting on a 3 horse field and if everything is on the up and up, pay the winners.
In other words, the original reason for not accepting bets on 3 horse races isn't applicable to this book, because they can just 'not pay' if they don't want to.
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If they truly choose to sidestep losing propositions by breaking their own rules, my guess is that the word would spread quickly.
Rarely do I say this, but PA is probably not the optimal place for this complaint. There is probably a place where more bookie-players mingle that would give better responses.
My gut feeling is that - because it is so clearly in their rules - it is probably a legitimate non-payment.