Betfair in trouble over inducements in Australia
An outsider trying to understand:
- Australia’s online gambling regulations; and
- the manner in which regulators choose to enforce those regulations,
would be forgiven for being extremely confused.
Federal legislation doesn’t permit online poker and casino games. But this law isn’t enforced at all. Some of the industries’ UK/EU based operators exclude themselves from the Australian market; most do not…unless they decide to apply for or acquire a local online sports betting license (eg bet365, Unibet). Then they figure they better stop letting Australians player their casino and poker games online.
Despite online poker being unlawful, PokerStars for many years has maintained a Sydney based office with up to 200 staff working hard to grow their Australian business. It wasn’t until the Back Friday ruckus of 2011 that PokerStars entrenched presence here caused some media ripples. They’ve since subsided and it wouldn’t surprise me if it’s business as usual for PokerStars.
Federal legislation does permit online sports betting and marketing of such. The industry is licensed and regulated on a state/territory level with most operators licensed in Victoria, Tasmania or the Norther Territory.
In stark contrast to the casino and poker game situation, when it comes to sports betting, regulations are drafted and enforced rigorously. In fact they’re enforced with the same nanny-state gusto that sees fines handed out here to pedestrians crossing the road in the wrong spot, or riding their push bike without a helmet. I’ve heard it’s illegal to change a light bulb in the workplace if you’ re not a licensed electrician but luckily haven’t been fined for this one yet!
Betfair pleads guilty
Betfair’s recent run in with the Victorian gambling regulator is an example this.
In 2011 the Victorian Commission for Gambling Regulation charged four wagering providers with the offence of offering inducements to open betting accounts. Betfair was one of them. The other three were International All Sports, Betezy and Sportsbet (a Paddy Power company).
Betfair had offered players who deposited $50 into their account, a “Spring Racing Track Pack'”, and a “win or refund” of up to $50 on their first bet of the spring. As far as I can see this is simply marketing a service.
On Tuesday (21 May) Befair pleaded guilty to the offence in the Melbourne Magistrate’s court. Sportsbet who offered a similar inducement are appealing their guilty verdict to the Supreme Court.
Here’s the funny thing. I can’t see the VCGR lifting a finger to do anything about the $5,000 in first deposit match bonuses that Titan Casino will give to Victorian’s choosing to play in their live casino. Or any of the other (hundred’s) of online casino or poker rooms offering various inducements.
The other peculiar thing is that despite the ban on inducements, the VCGR seems happy with the likes of Tom Waterhouse appearing live during free-to-air race broadcasts spruiking various odds and offers at his betting site, including a refund on losing bets on horses trained by his mother Gai Waterhouse! Forgetting the obvious conflict of interest in a bet offer related to his mother’s horses, isn’t a refund on certain losing bets an inducement to bet?
Apparently not.
It is all very confusing.
Interesting post-script to this one. Today the Australian Wagering Council (Industry representative body chaired by Sportsbet CEO) has joined the call for an end to promotion of live odds during TV sports broadcasts.
Sportingbet CEO (and AWC member) Michael Sullivan said,
“It’s really just what the community has been asking for”. It was earlier reported that he blamed Tom Waterhouse for single-handedly turning public opinion against the industry, saying the outcry was, “affecting all our businesses”