Footy club affiliate deal lands Okebet in hot water

An affiliate relationship between three football clubs and wagering company Okebet has resulted in the Victorian Civil and Administrative Tribunal (VCAT) upholding a previous decision that the bookmaker had broken Victorian gambling law.

In September 2024, Okebet was found by the Victorian Gambling and Casino Control Commission (VGCCC) to have contravened the Gambling Regulation Act 2003 (Vic) by sending promotional gambling materials to self-excluded persons and offering prohibited inducements to community sporting clubs to get their members and supporters to open new betting accounts.

It had been fined $100,000 for the breach, but both the charges and the penalty had been appealed to VCAT by applicants Norman Oke, Steven McKay & Mark Opie, who were directors of Okebet at the time.

VCAT sustained the determination that Okebet has failed to comply with the harm minimisation direction. It will rule on the appeal against the penalty later this year.

Part of the case involved the relationship between Okebet and several football clubs.

VCAT was told that the Ocean Grove Football Club had discussions with a bookmaker’s representative, who proposed an agreement under which the club would pay a $100 fee for each active client referred by the club. The Club did not sign the agreement in that instance.

However, similar relationships were offered and subsequently signed between the Okebet representative and the Macedon Football Netball Club, Chelsea Football Club and the Dandenong Football Club.

“Concerning the other three clubs, I infer that each of the clubs passed the offer on to club members. There is high probability that that is what happened,” the VCAT hearing said.

“It is improbable that any of the clubs went to the trouble of considering the offer, signed a contract and then did nothing further.”

The VGCCC had determined that it was a breach of the law as it had targeted new customers, not just existing Okebet customers. Inducement to open a new account is a breach of the Act.

VCAT upheld the decision, saying that while there is no evidence in this proceeding that any club member opened an account with OkeBet, that was not relevant.

“Contravention of section 4.7.10 does not require evidence that the inducement caused a person to act because of the inducement. Put another way, the section does not require that the inducement was successful,” it said.

The VGCCC levied the $100,000 fine for that breach, with the VCAT appeal of that penalty to be determined on April 20.

The Tribunal also heard that Okebet had sent a promotional email to 1030 people in July 2023, which offered enhanced odds and cash back incentives.

Five recipients of that email complained to the VGCCC, stating they had informed Okebet that they did not wish to be permitted to bet and were therefore self-excluded. The Tribunal heard that at least one of the complainants suffered harm subsequent to the email being sent out.

Okebet was censured on that breach, and while it appealed that censure, VCAT upheld the initial decision.

VGCCC CEO Suzy Neilan said it was important that the initial decision had been upheld.

“We took disciplinary action in September 2024 because we were concerned that Okebet were taking advantage of community sporting clubs and exposing their supporters to gambling harm. We were also concerned that self-excluded people were still receiving promotional gambling offers from Okebet,” she said.

“Local footy and netball clubs are often the heart of their communities, places where people come together to support one another. They should not be used as vehicles to promote gambling, particularly where those promotions include inducements that are prohibited by law.”

“This decision serves as an important reminder to wagering service providers that they must comply with the law and minimise gambling harm.”0

Oke has since stepped away from the Okebet partnership. leaving Opie as the sole director.