Record fine for fantasy sports betting firm in Australia

Lea Hogg August 20, 2024

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Record fine for fantasy sports betting firm in Australia

PlayUp Interactive, trading as Draftstars, has been handed a record fine of $586,000 for breaching New South Wales’ stringent gambling advertising regulations as reported by The Guardian earlier today. The Sydney-based operator, known as Australia’s largest daily fantasy sports provider, was penalised after being found guilty of 33 offences related to illegal advertisements. These ads, prominently displayed on its website, offered free bets and other inducements to potential customers—a practice explicitly outlawed in the state.

The fine was issued by Sydney’s Downing Centre local court, marking the most substantial financial penalty ever imposed for such violations in New South Wales. Under state law, it is illegal to offer any incentives to open, maintain, or refer others to betting accounts. These regulations, which are similarly enforced across other Australian states and territories, aim to curb the aggressive marketing tactics that can lead to problem gambling.

A zero-tolerance approach to gambling violations

Dimitri Argeres, Director of Compliance and Enforcement at Liquor and Gaming NSW, drew attention to the gravity of the offences and the company’s responsibility to adhere to the legal framework governing gambling advertising. “It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW,” Argeres stated, reflecting the regulator’s unwavering commitment to enforcing these laws. He further emphasised that Liquor and Gaming NSW will continue to adopt a zero-tolerance approach, with the hefty fine serving as a stark reminder of the consequences of non-compliance.

This record-breaking penalty comes at a time of intense national debate over the future of gambling advertising in Australia. Amid growing concerns about the impact of such ads on vulnerable populations, there has been a push for federal legislation that would impose a blanket ban on gambling promotions across all media platforms, including television, streaming services, and radio. The debate has also highlighted the reliance of Australian media companies on gambling ad revenue, prompting discussions about alternative funding models.

PlayUp Interactive, which operates not only in Australia but also in New Zealand, India, and the United States, has yet to publicly comment on the ruling. The company acquired Draftstars in 2018 from CrownBet, which later merged with Sportsbet. The penalty imposed on PlayUp far exceeds the previous record fine of $210,000 levied against Betr in 2023 for similar offences. As the largest daily fantasy sports operator in the country, PlayUp’s compliance with gambling laws will likely continue to be scrutinised closely by regulators.