Sportsbet faces class action in Victoria’s Supreme Court over alleged illegal in-game betting practices

A class action lawsuit has been filed against Sportsbet, one of Australia's largest online betting companies, over alleged breaches of gambling laws related to in-game betting. Maurice Blackburn Lawyers initiated the legal proceedings in the Supreme Court of Victoria on December 24, seeking refunds for bettors who used Sportsbet's "Fast Code" service to place live bets on sporting events.  

Maurice Blackburn contends that the Fast Code service, which allows users to place bets on sporting events after they have commenced, violates Australian gambling laws. Under current regulations, in-play betting on sports is prohibited unless conducted entirely via telephone.

The law firm argues that Sportsbet’s service facilitated bets in a way that bypassed the voice-call requirement, making it illegal and misleading to consumers.  

According to Maurice Blackburn Principal Elizabeth O'Shea, the alleged circumvention of these laws undermines key regulations designed to prevent gambling harm.

“Betting on a sporting event after the event commences is prohibited in Australia. There is an exception to this if the bet is made wholly by telephone,” O'Shea stated.

“We believe that Sportsbet's use of the Fast Code service is not just an attempt to circumvent important laws aiming to prevent gambling harm, it is also illegal because key information about the bet is communicated by punters otherwise than by a voice call.”  

The class action covers losses incurred by individuals who placed in-play bets using the Fast Code service within the past six years, from December 24, 2018, to December 24, 2024. However, wagers placed on racing events, including horse, harness, and greyhound racing, are not included in the lawsuit.

Maurice Blackburn alleges that Sportsbet misrepresented the legality of the service to its users, engaging in misleading or deceptive conduct that contravenes Australian Consumer Law.  

If the legal action is successful, Sportsbet could be required to refund millions of dollars in bets placed through the service. The case also raises broader concerns about regulatory compliance within the online gambling industry and the effectiveness of enforcement mechanisms in addressing potential violations.  

Sportsbet has not yet provided a detailed public response to the allegations but is expected to mount a vigorous defense. The company, owned by global betting company Flutter Entertainment, has faced legal scrutiny in the past.  

In a separate matter, Sportsbet previously confronted legal challenges, including a now-dismissed lawsuit from accused fraudster Benjamin Carter, who had alleged that the company encouraged excessive gambling behavior.

Additionally, Sportsbet and its insurer initiated legal proceedings against Deloitte last year, accusing the accounting firm of negligence related to audits of William Hill Australia before its acquisition by BetEasy, which later merged into Sportsbet.