Australia: PlayUp fined record AUD586,000 for illegal gambling ads

Online betting operator PlayUp Interactive, trading as Draftstars, has been hit with a record fine of AUD 586,000 ($392,700) for illegally offering inducements to gamble. The penalty was imposed by Sydney’s Downing Centre local court in mid-August after the company was found guilty of 33 related offenses involving prohibited advertising.

The infractions involved offering free bets and other incentives in 33 advertisements on its website, which violates New South Wales (NSW) laws prohibiting inducements to open or maintain betting accounts, refer friends, or consent to receive gambling advertising. Similar regulations are enforced across other Australian states and territories.

Dimitri Argeres, Director of Compliance and Enforcement at Liquor and Gaming NSW, highlighted the operator's responsibility to adhere to advertising laws. "It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW," Argeres said, reinforcing the agency's "zero-tolerance approach" to such violations.

The record fine arrives amidst ongoing national discussions about tighter restrictions on gambling advertisements, with some advocating for a blanket ban on such ads across broadcast TV, streaming services, and radio.

PlayUp, Australia’s largest daily fantasy sports provider, also operates in New Zealand, India, and the United States. The company is an approved betting operator for major sports organizations including the NRL, AFL, and Cricket Australia. PlayUp acquired Draftstars in 2018 from CrownBet, which later merged with Sportsbet.

The AUD 586,000 fine surpasses the previous record of AUD 210,000 issued to Betr in 2023 for 14 advertising violations involving inducements. In NSW, the maximum penalty for corporations found guilty of prohibited gambling advertising is $110,000 per offense.