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NSW gambling operator hit with record $600K fine for illegal ads

A landmark ruling sends shockwaves through the industry as regulators clamp down. Why this fine could reshape gambling advertising in Australia.

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The image shows a blue and white logo with the words "Gamblers vs 28" written on it, along with a...
The image shows a blue and white logo with the words "Gamblers vs 28" written on it, along with a few playing cards and a stick. The logo is likely associated with a gambling game, suggesting that the image is meant to represent the differences between the two sides of the game.

NSW gambling operator hit with record $600K fine for illegal ads

An investigation in New South Wales (NSW), Australia, resulted in a record fine against one online gambling operator. The case involves PlayUp Interactive, a company that trades in the country as Draftstars.

The operator was fined nearly AU$600,000 ($405,000) after an investigation by the gambling regulator in the state, Liquor & Gaming NSW. The probe uncovered that PlayUp advertised its services through 33 illegal ads on its website.

The gambling regulations effective in NSW currently prohibit operators from offering inducements to customers to open betting accounts. Moreover, the gambling laws prohibit referring friends to open gambling accounts or the promotion of gambling services to customers who do not have betting accounts.

Dimitri Argeres, Liquor & Gaming NSW's director of compliance and enforcement, spoke about the existing regulatory framework, explaining that gambling operators are aware of the restrictions related to marketing and inducements. "NSW bans the advertisement of any offer of an inducement to participate in a gambling activity, including an inducement to bet more frequently, to persons who do not hold a betting account with the betting operator," he added.

Liquor & Gaming NSW Maintains a Zero-Tolerance Approach to Such Offenses

Argeres reminded operators that it is their own responsibility to ensure their compliance with the gambling advertising rules for customers in NSW. He said that PlayUp, as well as other online betting providers, can leverage different methods for advertising with the exception of offering inducements such as bonuses, increased odds or other enticements that come along with opening an account.

"Wagering operators like PlayUp Interactive are able to legally advertise their products in a variety of 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."

The executive reiterated Liquor & Gaming NSW's strong stance on compliance. In conclusion, Argeres said that the gambling regulator will continue to monitor the sector and use a "zero-tolerance approach" to offenses such as the latest one.

After the investigation, a Downing Centre Local Court found PlayUp Interactive guilty of 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." Considering that the described breaches are recognized as an offense in NSW, the operator was fined AU$586,000 ($395,100).

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