Online betting operator PlayUp Interactive, trading under the name Draftstars, has been hit with a record-breaking fine of $586,000 for illegally offering inducements to gamble through 33 advertisements on its website. The fine, issued on Monday, August 12, by the Downing Centre Local Court, marks a significant enforcement of New South Wales’ stringent regulations on gambling advertising.
Record fine for illegal gambling ads:
Following an in-depth investigation by Liquor & Gaming NSW, PlayUp Interactive was found guilty of all 33 charges related to publishing advertisements that offered illegal inducements. These included enticements to participate in gambling activities, frequent gambling, and the opening of new betting accounts. In New South Wales, it is a clear violation of the law to publish such inducements, particularly to individuals who do not hold existing betting accounts with the operator.
Dimitri Argeres, Director of Compliance and Enforcement at Liquor & Gaming NSW, emphasized that the legislation governing gambling advertising in the state is well-known among operators. “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,” said Argeres in an official press release. He further noted the responsibility of betting service providers to ensure that prohibited advertising is neither published nor communicated within the state.
The hefty fine imposed on PlayUp Interactive underscores the zero-tolerance stance that Liquor & Gaming NSW maintains toward illegal gambling advertising. Argeres highlighted that while operators like PlayUp Interactive can legally advertise their products in various ways, they are strictly forbidden from promoting inducements such as bonus bets or increased odds to lure individuals into opening betting accounts.
As The Guardian reports, “This sentence shows that strong penalties can apply,” Argeres remarked, reflecting the seriousness of the offense and the state’s commitment to upholding its gambling laws. The maximum penalties for such offenses in NSW can reach up to $110,000 for corporations and $11,000 for individuals, indicating the severity of PlayUp Interactive’s violations.
Broader implications for the gambling industry:
The record fine against PlayUp Interactive comes amidst broader national discussions about gambling advertising regulations in Australia. There is growing momentum for federal laws that would impose a blanket ban on gambling ads across broadcast TV, streaming services, and radio. This reflects increasing concern over the impact of gambling advertisements on vulnerable individuals and communities.
PlayUp Interactive’s penalty also follows a similar case in 2023, where Betr was fined $210,000 for 14 infringements related to illegal inducements in advertisements. The escalating penalties serve as a warning to other operators about the stringent enforcement of gambling laws across Australia.
