PlayUp Interactive Hit with Record Fine for Illegal Gambling Ads
On August 12, the Downing Center Local Court fined PlayUp Interactive, operating under the name Draftstars, the record-breaking $586,000. This penalty was imposed because the company’s website hosted 33 illegal adverts. After an investigation conducted by the Liquor & Gaming NSW the court found PlayUp Interactive guilty on all counts.
Zero-Tolerance Policy Towards Illegal Gambling Ads in New South Wales. © rawpixel, 123RF Free Images
What Made These Ads Illegal?
The illegal advertisements included incentives to open new betting accounts and and encourage repetitive gambling, which clearly violated local NSW regulations.
“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.”– Dimitri Argeres, Director of Compliance & Enforcement at Liquor & Gaming NSW, Liquor & Gaming NSW
Legal vs. Illegal Advertising in NSW
While betting operators like PlayUp Interactive are allowed to advertise their services, they are prohibited from promoting inducements such as enhanced odds or bonus bets to attract new customers.
“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.”– Dimitri Argeres, Director of Compliance & Enforcement at Liquor & Gaming NSW, Liquor & Gaming NSW
NSW’s Zero Tolerance for Violations
This case underscores the zero-tolerance stance on illegal gambling advertisements of the Liquor & Gaming NSW. The agency has made it clear that significant penalties will be imposed for violations.
In NSW, it is illegal to offer inducements to open or maintain betting accounts, refer others to do so, or to consent to receive gambling advertising. Corporations found guilty of publishing prohibited gambling ads face a maximum penalty of $110,000, while individuals can be fined up to $11,000.
“It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW.”– Dimitri Argeres, Director of Compliance & Enforcement at Liquor & Gaming NSW, Liquor & Gaming NSW
Impact on the Gambling Industry
Liquor & Gaming NSW’s decisive action in this case highlights the importance of compliance with gambling advertising regulation. The enforcement measures serve as a deterrent for other operators who might consider flouting the laws. This could lead to a more regulated and responsible gambling environment.
Are Stricter Gambling Ad Regulations on the Horizon?
The future could see even more stringent regulations to curb illegal gambling advertising practices. As authorities continue to clamp down on violations, it will be crucial for betting operators to stay updated on legal requirements and adapt their marketing strategies accordingly to comply with them.
