Record fine for fantasy sports betting company luring Australian gamblers with illegal offers
An online betting operator has been hit with a record fine for illegally offering inducements to gamble in dozens of ads.
PlayUp Interactive, which trades as Draftstars, was caught offering free bets and providing other lures to would-be players in 33 advertisements on its site.
The company was fined $586,000 in Sydney’s Downing Centre local court in mid-August after the company was found guilty of all 33 related offences.
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 in New South Wales.
Similar regulations are in place in other states and territories.
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Liquor and Gaming NSW’s director of compliance and enforcement, Dimitri Argeres, said the operator would have been well aware of the laws in place for advertising.
“It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW,” he said on Tuesday.
“Liquor and Gaming NSW will continue to take a zero-tolerance approach to these offences and this sentence shows that strong penalties can apply.”
The record fine comes amid fierce debate over national changes to gambling advertising after a push for federal laws to provide a blanket ban on ads on broadcast TV, streaming services and radio.
Fantasy sports betting app Draftstars was acquired by PlayUp in 2018 from CrownBet, a firm later merged into Sportsbet.
The Sydney-based PlayUp also operates in New Zealand, India and the US.
The company is Australia’s largest daily fantasy sports provider and is an approved betting operator for the NRL, AFL and Cricket Australia, among other major sporting governing bodies.
The fine exceeds the $210,000 penalty handed out to Betr in 2023 for 14 infringements linked to inducements in ads.
A maximum penalty of $110,000 applies for corporations and $11,000 for individuals guilty of offences linked to prohibited gambling advertising.
PlayUp has been contacted for comment.
• In Australia, Gambling Help Online is available on 1800 858 858. The National Debt Helpline is at 1800 007 007. In the UK, support for problem gambling can be found via the NHS National Problem Gambling Clinic on 020 7381 7722, or GamCare on 0808 8020 133. In the US, call the National Council on Problem Gambling at 800-GAMBLER or text 800GAM.