Online bookmaker PlayUp Interactive has been fined almost $600,000 for luring gamblers with illegal inducements and offers.
The fantasy sports betting firm was hit with a record $586,000 penalty in Sydney’s Downing Centre Local Court.
A Liquor & Gaming NSW investigation found 33 illegal advertisements on the company’s website.
PlayUp was found guilty on all 33 counts of publishing advertisements, which included inducements to participate or to participate frequently in gambling activity.
It was also found guilty of offering an incentive to open a betting account, an offence in NSW.
Liquor & Gaming NSW’s director of compliance and enforcement, Dimitri Argeres, said there was no excuse for PlayUp not to be aware of NSW gambling advertising laws.
“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,” Argeres said.
“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.“It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW.
“Liquor and Gaming NSW will continue to take a zero-tolerance approach to these offences, and this sentence shows that strong penalties can apply.”
In NSW, it is illegal to offer any inducements to open betting accounts, refer friends to open betting accounts, keep a betting account open or consent to receive gambling advertising.
The fine exceeds a $210,000 penalty handed out to betr in 2023 for 14 infringements linked to inducements in ads during a much-publicised launch in 2022.
Founded by Matthew Tripp and backed by News Corp, betr offered 100-1 inducements through the media giant’s affiliated newspapers, radio and television networks.
The inflated odds generated thousands of new clients for betr but a Liquor & Gaming NSW inquiry found the promotion breached regulations because it encouraged people to open a betting account.
Betr, which has since merged with BlueBet, agreed to pay the fine without contesting the findings but a spokesman said at the time the company did not believe it was in breach of Liquor & Gaming NSW regulations.
Bren O’Brien
A maximum penalty for each offence of $110,000 applies to any corporation and $11,000 for individuals who publish prohibited gambling advertising.
Argeres said PlayUp, which is licensed in the Northern Territory, would have been well aware of the laws in place for advertising.
PlayUp is Australia’s largest daily fantasy sports provider after acquiring the Tripp-founded DraftStars in 2018.
With its headquarters in Sydney, PlayUp also operates in New Zealand and India and intends to launch in multiple US states.
