Australian online sports and betting operator PlayUp Interactive, operating under the trade name Draftstars, was fined AUD 586,000 (USD 394,389) by the Downing Centre Local Court for violating New South Wales (NSW) gambling laws.
After an investigation by the NSW Office of Liquor and Gaming, it was found that the company's website had 33 instances of illegal advertising, leading to a fine imposed on August 12, 2024.
The court ruled that the advertisements published by PlayUp Interactive contained inducements to participate in gambling activities, which are prohibited under NSW law. The court found that these illegal advertisements aimed to entice people to gamble more frequently and to open new betting accounts.
In NSW, such actions are considered illegal, as the state has strict regulations on gambling service advertisements.
Dimitri Argeres, Director of Compliance and Enforcement for NSW Liquor and Gaming, stated: "NSW prohibits any advertising that tempts people who have not opened betting accounts with operators, including the temptation to bet more frequently."
Argeres further clarified that while operators like PlayUp Interactive are allowed to promote their products, they must not use inducements such as bonus bets or increased odds to attract individuals to open betting accounts.
He emphasized that gambling service providers have a responsibility to ensure that prohibited gambling advertisements are not published or disseminated within NSW.
The substantial fine imposed on PlayUp Interactive is one of the highest of its kind in the state, highlighting the NSW Office of Liquor and Gaming's zero-tolerance policy towards illegal gambling advertisements.
Earlier this year, the former licensee of the St George Hotel in Belmore was fined for operating gaming machines outside permitted hours, another example of the regulatory body actively maintaining industry compliance.
NSW laws prohibit using inducements to open, recommend someone else to open, or maintain betting accounts. Companies found to have published prohibited gambling advertisements can face fines up to AUD 110,000, while individuals can face up to AUD 11,000 in fines.
