Sports streaming service Kayo and its parent company Hubbl could be subject to millions of dollars in fines after a bug in their system allowed gambling advertisements during live sports broadcasts.

Kayo
Kayo has been ordered to undertake an external audit of its systems and processes following a breach of gambling advertising laws.

The Australian Communications and Media Authority (ACMA) has found Kayo and Hubbl breached gambling advertising rules in allowing 16 different gambling advertisements to be broadcast across a total of 267 live sport events in February and March last year,

Current gambling advertising rules state that advertising must not be shown during live sport events between 5am and 8.30pm, including in the five minutes before and after the event.

Hubbl has advised that a bug in its IOS application caused the issue, which persisted for a six-week period.

Under the law, Hubbl could be ordered by the Federal Court to pay penalties of up to $626,000 per day for the breach.

However, ACMA has issued Hubbl a remedial direction that requires it to undergo an external audit of its technical systems and processes.

That audit will include Hubbl demonstrating measures that it has implemented subsequent to the breaches occurring.

Failure to comply with the direction would result in fines being issued.

“Online streaming services as well as broadcasters all have a responsibility to put robust systems in place so that they adhere to these long-standing gambling advertising rules,” ACMA Authority member Carolyn Lidgerwood said.

“The rules are there to reduce viewer exposure to gambling ads, particularly for impressionable young audiences and those vulnerable to gambling harms. In this case Hubbl has let those viewers down.”