Liquor and Gaming New South Wales has fined PlayUp Interactive AU$586,000 for offering customers inducements to gamble.
The penalty of AU$586,000 (€350,000) is the highest fine imposed by New South Wales for gambling infringements.
An investigation by Liquor & Gaming NSW found PlayUp Interactive, the operating company of fantasy games operator DraftStars, to have made 33 illegal offers promoting customer inducements.
The investigation found that: “DraftStars was found guilty on all 33 counts of publishing advertisements which included inducements to participate, or to participate frequently, in gambling activity – as well as an inducement to open a betting account, which is an offence in NSW.”
State laws prohibit online gambling licensees from offering any inducements to open betting accounts, refer friends to open betting accounts, keep a betting account open, or consent to receive gambling advertising.
Liquor & Gaming NSW applied a record fine, as a maximum penalty of AU$110,000 applies to any corporation and AU$11,000 for individuals who publish prohibited gambling advertising.
The Director of Compliance, Dimitri Argeres, supports the authority’s zero-tolerance approach to marketing infringements, stating that PlayUp was “well aware of the legislation in NSW on offering inducements.”
“NSW bans the advertisement of any offer of an inducement to participate in gambling activity, including an inducement to bet more frequently, to persons who do not hold a betting account with the betting operator,” Argeres said.
“Wagering operators like PlayUp Interactive are able to legally advertise their products in various ways, but they can’t advertise or promote inducements such as offers of increased odds or bonus bets to entice people to open a betting account.”
“It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW.”
Australia’s government has yet to settle on the definitive terms of a new regulatory framework to apply federal rules and standards on gambling advertising across Australia’s six Commonwealth states.
The Labor government faces mounting pressure to publish proposals, with PM Anthony Albanese reportedly backing ‘watered-down’ measures from the Murphy Inquiry.
The latest reports detail that PM Albanese is bargaining with party members who directly oppose implementing a cap on gambling ads on TV and sports programming, over a phased three-year approach to implement a blanket ban on gambling advertising across all mediums.
