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Theres some instances on tennis match that the game is mark as canceled when the player retired on the middle of the game. Some bets are still tag as cancelled even if it won already like bets on total score due to the game didnt finish at all as per ToS of some sportsbook. Its important to read ToS because some of them includes rule to make some situations in favor to them.
On his example. I think he is pertaining on old issue that sportsbook cancelled all the bet of the player due to the involvement of user to shady bets such as fixed match and arbitrage bets. Theres no reported issue that casino cancelled match while it is won without a valid reason.
That's what I mean, if the game is not finished, there are no winners or losers. If the bets were "canceled" after the game was finished, then it's nothing but a fraud. But yeah, In case of fixed games, things can get a bit more complicated - but still they could freeze the funds of suspected players and contact authorities. Canceling the game because the THINK it might have been fixed is still not right.
ToS are not very reliable as usually any business reserves the right to change them and essentially are wording them in a way to give themselves a maximum privilege over players. It's important to remember that ToCs do not supersede the law.
And there's absolutely nothing shady about arbitrage bets
