The consumer watchdog has launched court action against Bet365, accusing the online betting agency of misleading punters with "free" and "bonus" offers.
The Australian Competition and Consumer Commission (ACCC) said the agency did not properly display the conditions attached to offers of free bets and deposit bonuses.
Consumers had to risk their own deposit, gamble large amounts of money and bet on high-risk transactions in order to be eligible for the offers, the ACCC said.
Prosecutors will target three llocal companies contected to the major British wagering operator, Bet365 Group.
The Australian outlet of Bet365, which began taking bets in 2012, reported a $40.8 million loss in its 2014 financial year.
Chairman Rod Sims said consumer issues in online trading were an enforcement priority for the ACCC.
“The online betting industry is a growing business sector. The Australian Consumer Law applies to this sector in the same way that it applies to other industries and sectors,” Mr Sims said.
“The Consumer Law also requires that any conditions, limitations or restrictions should be made clear to the consumer before the purchase rather after a consumer has been unfairly enticed into a transaction.”
ACCC said the agency had changed its website since it was contacted about the matter.
In a separate case, the regulator has also launched Federal Court proceedings against kitchen blender supplier OmniBlend Australia, claiming it engaged in price fixing with a competitor.
The company also allegedly induced a supplier to direct its key competitor not to discount its prices for blenders.
OmniBlend, which supplies blenders through its online store to business and consumers around the world, and its competitor were two major distributors of OmniBlend branded blenders in Australia.
The ACCC said when OmniBlend's attempt to enter into a price fixing agreement failed, it induced the supplier to engage in resale price maintenance by refusing to supply the competitor unless it stopped discounting the price of certain blenders.
OmniBlend’s sole director, Mr Neal Bowhay, has also been joined to the proceedings for aiding and abetting the alleged conduct.
“Price fixing and resale price maintenance affect consumers by increasing prices, reducing consumer choice and distorting the competitive process,” Mr Sims said.
“The ACCC views these types of anticompetitive conduct very seriously and will not hesitate to investigate and where appropriate take enforcement action against businesses who engage in this behaviour.”
Both the OmniBlend and Bet365 matters are due in court in October. The companies have been contacted for comment.