Online betting operator PlayUp Interactive has been hit with a record fine of nearly $600,000 for offering free bets and encouraging people to gamble.
Trading under the name Draftstars, PlayUp Interactive was fined $586,000 in Downing Centre Local Court on Monday, August 12, following an investigation by Liquor & Gaming NSW. The investigation uncovered 33 illegal advertisements on its website.
The company was found guilty on all 33 counts for publishing ads that included inducements to engage in gambling activities or to gamble more frequently, as well as an inducement to open a betting account, which is illegal in NSW.
Dimitri Argeres, Director of Compliance & Enforcement at Liquor & Gaming NSW, stated that online betting operators are well aware of the NSW laws regarding inducements.
“NSW prohibits any advertisement that offers an inducement to participate in gambling activities, including encouraging more frequent betting, to individuals who do not have a betting account with the operator,” Mr. Argeres explained.
“Wagering operators like PlayUp Interactive can legally advertise their products in various ways, but they are not allowed to promote inducements, such as enhanced odds or bonus bets, to encourage people to open a betting account.
“It is the responsibility of the betting service provider to ensure that prohibited gambling advertisements are not published or communicated in NSW.
“Liquor & Gaming NSW will maintain a strict stance on these violations, and this penalty demonstrates that significant fines can be imposed.”
In NSW, it is illegal to offer any inducements to open betting accounts, refer others to open betting accounts, keep a betting account active, or agree to receive gambling advertisements.
The maximum penalty for a corporation that publishes prohibited gambling advertising is $110,000, while individuals can face a fine of up to $11,000.
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