The Australian gambling landscape is currently under intense scrutiny, with a new court case involving Flutter Entertainment’s Sportsbet. This legal battle, spearheaded by Kym Cavigan, a resident of Victoria, has raised critical questions about the responsibilities of gambling operators.
Kym Cavigan has initiated legal proceedings against Sportsbet, claiming that the company failed to prevent the use of stolen funds for gambling activities. The case stems from a scandal involving Andrew Marshall, an accountant who misappropriated approximately AU$280,000 from his clients, including Cavigan. Although Marshall has admitted guilt, Cavigan argues that Sportsbet had a duty to implement robust measures to verify the source of funds deposited by users.
This lawsuit highlights significant concerns regarding Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations within the Australian gambling sector. While Marshall’s actions did not constitute money laundering, the case underscores the necessity for gambling operators to conduct thorough checks on the origins of funds. The scrutiny surrounding Sportsbet is not isolated; earlier this year, Entain faced investigation for allegedly failing to meet AML requirements.
The ongoing legal challenges are occurring against a backdrop of increasing political pressure for reform in Australia’s gambling laws. It has been two years since the Murphy Report, which outlined 31 recommendations aimed at overhauling gambling regulations in the country. These recommendations included the establishment of a national gambling regulator, restrictions on advertising, and enhanced player protection measures.
Members of Parliament (MPs) are expressing growing impatience with the government’s slow response to the recommendations outlined in the Murphy Report. A particular focus has been placed on the Northern Territory Racing and Wagering Commission (NTRWC), which is often viewed as the de facto national regulator for online gambling in Australia. Critics argue that the NTRWC’s close ties to the industry, including accepting hospitality gifts, compromise its ability to regulate effectively.
The public sentiment surrounding gambling regulation is increasingly vocal. Independent MP Andrew Wilkie has taken to social media to voice his frustration, stating that the government has ignored the Murphy Report and obstructed efforts to hold gambling companies accountable. His comments resonate with a broader community concern regarding the impact of gambling on Australian society.
Recent statistics from the Australian Gambling Research Centre (AGRC) reveal that a staggering 65.1% of Australians engaged in gambling activities in the year leading up to October 2024. While lotteries accounted for a significant portion of this figure, the rise of online gambling has raised alarms about the associated risks, including increased gambling frequency and psychological distress.
As calls for reform intensify, Prime Minister Anthony Albanese faces mounting pressure to act on the Murphy Report’s recommendations. However, he has shown reluctance to pursue certain measures, particularly a blanket ban on gambling advertising. This hesitance is believed to stem from a desire to avoid conflict with betting and media companies ahead of upcoming elections.
Despite the current challenges, there is a sense that reform may be on the horizon for Australia’s gambling industry. The market, valued at an estimated AU$244 billion, continues to attract new entrants, including companies like XBet and NextBet. The competitive landscape is further complicated by a bidding war between local brand Betr and Japanese tech firm MIXI for PointsBet.
Showing posts with label Australia. Show all posts
Showing posts with label Australia. Show all posts
October 13, 2025
December 01, 2023
Victoria government told to copy primetime ban on gambling advertising
The Public Accounts and Estimates Committee (PAEC) of the Australian state of Victoria has called for stricter regulations on gambling advertising.
The public body has recommended that its state government align with South Australia’s policy, which bans gambling adverts on TV from 4pm to 7:30pm. The recommendation forms part of the PAEC report, following an eight-month review of three Auditor-General reports, focuses on gambling and liquor regulation in Victoria.
The report, with 96 findings and 61 recommendations, was influenced by public submissions, hearings, site visits, and a youth roundtable.
“Our report’s 96 findings and 61 recommendations have been informed by 54 public submissions, three days of public hearings, a Geelong site visit and a youth roundtable,” commented Committee Chair Sarah Connolly.
The report cited a 2021 Australian Communications and Media Authority-commissioned study that found an “average of 948 gambling ads were broadcast daily on free-to-air TV and an average of 148 gambling ads were broadcast between 6.00pm–8.30pm every weeknight”.
In addition, the report stated that “between May 2022 and April 2023, more than one million gambling ads aired on free-to-air television and radio across Australia, the ‘clear majority’ being from online wagering companies”.
Connolly noted: “More appropriate regulations and safeguards are needed to protect Victorians, especially our children and young people.”
A group of young people who shared their lived experiences with gambling and alcohol during an event at Parliament House in August were also present in Parliament for the tabling of the report earlier this week.
The report has also asked the government to consider reducing the total number of electronic gaming machines across the state and updating the gambling and alcohol-related harms education resources for students.
The PAEC has also recommended that any venue that wishes to increase the number of EGMs it has must prove that it will provide a “net economic and social benefit” to the community.
It has also been recommended that the Victorian Gambling and Casino Control Commission establish a regular consultation with the local government regarding the current gambling regulations in the state and any measures that could be taken to reduce gambling harm.
The Victorian government has been asked to review daily, weekly and annual gambling loss limits as well, including examining frameworks present in Norway, Sweden, Finland and Tasmania.
The public body has recommended that its state government align with South Australia’s policy, which bans gambling adverts on TV from 4pm to 7:30pm. The recommendation forms part of the PAEC report, following an eight-month review of three Auditor-General reports, focuses on gambling and liquor regulation in Victoria.
The report, with 96 findings and 61 recommendations, was influenced by public submissions, hearings, site visits, and a youth roundtable.
“Our report’s 96 findings and 61 recommendations have been informed by 54 public submissions, three days of public hearings, a Geelong site visit and a youth roundtable,” commented Committee Chair Sarah Connolly.
The report cited a 2021 Australian Communications and Media Authority-commissioned study that found an “average of 948 gambling ads were broadcast daily on free-to-air TV and an average of 148 gambling ads were broadcast between 6.00pm–8.30pm every weeknight”.
In addition, the report stated that “between May 2022 and April 2023, more than one million gambling ads aired on free-to-air television and radio across Australia, the ‘clear majority’ being from online wagering companies”.
Connolly noted: “More appropriate regulations and safeguards are needed to protect Victorians, especially our children and young people.”
A group of young people who shared their lived experiences with gambling and alcohol during an event at Parliament House in August were also present in Parliament for the tabling of the report earlier this week.
The report has also asked the government to consider reducing the total number of electronic gaming machines across the state and updating the gambling and alcohol-related harms education resources for students.
The PAEC has also recommended that any venue that wishes to increase the number of EGMs it has must prove that it will provide a “net economic and social benefit” to the community.
It has also been recommended that the Victorian Gambling and Casino Control Commission establish a regular consultation with the local government regarding the current gambling regulations in the state and any measures that could be taken to reduce gambling harm.
The Victorian government has been asked to review daily, weekly and annual gambling loss limits as well, including examining frameworks present in Norway, Sweden, Finland and Tasmania.
November 14, 2023
Australia: Credit Card Use For All Gambling To Be Banned
New laws have been passed in the Australian House of Representatives on Tuesday to extend the ban on credit card use for online gambling. The ban, which was previously limited to physical gambling locations such as casinos, will now encompass websites and gambling apps. The legislation aims to address concerns raised by a joint inquiry into gambling reform and has received bipartisan support.
In recent years, there has been a growing concern about the impact of gambling addiction on individuals and their families. The accessibility and convenience of online gambling platforms has led to lawmakers calling for stricter regulations. The joint inquiry into gambling reform, established under the previous Morrison government, made several recommendations to address these concerns. One of the key recommendations was the extension of the existing ban on credit card use at physical gambling venues to also include online platforms.
The new laws passed by the House of Representatives seek to extend the ban on credit card use for gambling to online platforms. This means that punters will no longer be able to use their credit cards to place bets on websites or through gambling apps. The ban also includes digital currencies such as cryptocurrency, closing any potential loopholes that may have allowed for alternative forms of payment.
To ensure compliance with the ban on credit card use, the legislation empowers the media watchdog to enforce the new laws. Companies that fail to enforce the ban could face substantial fines, with penalties exceeding $234,000. This strict enforcement mechanism aims to deter gambling operators from disregarding the ban and to create a safer gambling environment for consumers.
Recognizing the need for a transitional period, the legislation allows for a six-month window for banks and gambling companies to implement the necessary changes. This timeframe enables these entities to adjust their systems and processes to comply with the ban on credit card use. During this period, clear guidelines and support will be provided to ensure a smooth transition and minimize disruption for both operators and consumers.
The extension of the credit card ban to online gambling platforms has significant implications for consumers. By removing the option to use credit cards for gambling, the legislation aims to prevent individuals from accumulating excessive debt and protect vulnerable individuals from falling into gambling addiction. It promotes responsible gambling practices by encouraging punters to only use funds they actually have available, rather than relying on credit.
The new laws also have implications for gambling operators, who will need to adapt their payment systems to comply with the credit card ban. This may involve implementing new payment methods that exclude credit cards or partnering with alternative payment providers to offer secure and responsible gambling options. While these changes may require initial investment and adjustment, operators have the opportunity to enhance their reputation as responsible providers and attract a more conscientious customer base.
The passing of the new gambling reform laws in the House of Representatives has generally been well-received by the public, who view it as a positive step towards curbing gambling addiction. However, there has been some opposition and attempts to amend the legislation by the opposition and crossbenchers. Despite these efforts, the laws were passed with bipartisan support, indicating a broad consensus on the need for stronger regulations in the gambling industry.
In recent years, there has been a growing concern about the impact of gambling addiction on individuals and their families. The accessibility and convenience of online gambling platforms has led to lawmakers calling for stricter regulations. The joint inquiry into gambling reform, established under the previous Morrison government, made several recommendations to address these concerns. One of the key recommendations was the extension of the existing ban on credit card use at physical gambling venues to also include online platforms.
The new laws passed by the House of Representatives seek to extend the ban on credit card use for gambling to online platforms. This means that punters will no longer be able to use their credit cards to place bets on websites or through gambling apps. The ban also includes digital currencies such as cryptocurrency, closing any potential loopholes that may have allowed for alternative forms of payment.
To ensure compliance with the ban on credit card use, the legislation empowers the media watchdog to enforce the new laws. Companies that fail to enforce the ban could face substantial fines, with penalties exceeding $234,000. This strict enforcement mechanism aims to deter gambling operators from disregarding the ban and to create a safer gambling environment for consumers.
Recognizing the need for a transitional period, the legislation allows for a six-month window for banks and gambling companies to implement the necessary changes. This timeframe enables these entities to adjust their systems and processes to comply with the ban on credit card use. During this period, clear guidelines and support will be provided to ensure a smooth transition and minimize disruption for both operators and consumers.
The extension of the credit card ban to online gambling platforms has significant implications for consumers. By removing the option to use credit cards for gambling, the legislation aims to prevent individuals from accumulating excessive debt and protect vulnerable individuals from falling into gambling addiction. It promotes responsible gambling practices by encouraging punters to only use funds they actually have available, rather than relying on credit.
The new laws also have implications for gambling operators, who will need to adapt their payment systems to comply with the credit card ban. This may involve implementing new payment methods that exclude credit cards or partnering with alternative payment providers to offer secure and responsible gambling options. While these changes may require initial investment and adjustment, operators have the opportunity to enhance their reputation as responsible providers and attract a more conscientious customer base.
The passing of the new gambling reform laws in the House of Representatives has generally been well-received by the public, who view it as a positive step towards curbing gambling addiction. However, there has been some opposition and attempts to amend the legislation by the opposition and crossbenchers. Despite these efforts, the laws were passed with bipartisan support, indicating a broad consensus on the need for stronger regulations in the gambling industry.
July 22, 2020
NSW jockey Adam Hyeronimus guilty for illegal wagers
New South Wales (NSW) jockey Adam Hyeronimus has been found guilty of 30 out of 31 illegal betting charges, dating back to illegal bets that took place over three years beginning in 2016. Stablehand Blake Paine was found guilty alongside the Hyeronimus by Racing New South Wales stewards. The group one-winning jockey faces a potentially long suspension from racing for his part in the scandal.
Racing NSW stewards successfully proved that Hyeronimus had an interest in a $500 bet on ride Lucky Metor at Canterbury in 2016. He was also found to have placed a $500 bet on Limbo Soul, another ride that won on debut at Rosehill in February 2017.
The guilty verdict carries serious implications, with both charges carrying a minimum two-year ban from racing.
The NSW hoop was found guilty of a further 29 bets from 2016 to 2019, all on thoroughbred horse racing. Stablehand Blake Paine was found to have played a part in 31 cases and was convicted of 31 counts of betting for a jockey. Both men will also face additional charges of supplying false evidence to the enquiry.
The enquiry showed that Hyeronimus transferred funds to Blake Paine, who then deposited the funds into a Sportsbet account under his name on at least 22 occasions. Stewards also found that winning bets from the same account were used to place additional bets with nearly $21,000 USD changing hands over three years.
Stewards provided details of the conversations between the pair, that also included exchanges with cricketers and NRL players. The SMS conversations between the pair included details on potential bets, with one discussion over a potential bet in the Golden Slipper. Hyeronimus and Paine then switched the discussion to Snapchat in an attempt to ensure the conversation couldn’t be traced. Snapchat picture messages are deleted from servers regularly.
In their policies, Racing NSW rules forbid jockeys from having any interest in facilitating “betting, or have any interest in a bet on any race.”
Hyeronimus pleaded not guilty to all charges during the hearing, but will be free to ride until his sentencing hearing in August. The NSW jockey has been in stunning form this year riding 49 winners, including a Group One win in the Vinery Stud Stakes at Rosehill in March.
November 14, 2019
Australian Regulator Goes To War With Illegal Operators
Australian Media Regulator the ACMA will instruct Internet providers to block overseas illegal online gambling operators to protect what it says are vulnerable gamblers.
Since the 2015 interactive review by then premier Barry O’Farell some 65 online operators that were serving the Australian market have left however some are still operating and have been named such as, FairGo Casino and Emu Casino that operate out of a Curacao license.
The AMCA say that Aussie gamblers spend upwards of $400 million a year on these illegal sites which works out to be a loss of around $100 million in loss of taxes to the government.
Not only this say the AMCA but most do not pay out on big wins or a small proportion of it. The Chairwoman of the AMCA Nerida O’Loughlin said, “We have been targeting illegal gambling services we know are active in the Australian market through complaints received and monitoring. But we expect that list of sites will grow as we investigate more,” Ms O’Loughlin said.
“The ability to have ISPs block illegal websites will be a valuable additional weapon in the ACMA’s arsenal in the fight against illegal online gambling.” She went on to say, “Customers had also experienced illegal operators continuing to withdraw funds from their bank account without authorisation.”
“If you have funds deposited with an illegal gambling site, you should withdraw those funds now.
“Public education is also crucial in deterring Australians from using these sites, given many illegal offshore gambling websites target Australians by using Australian themes and images, such as the Australian flag and native animals,” Ms O’Loughlin finished by saying.
Since the 2015 interactive review by then premier Barry O’Farell some 65 online operators that were serving the Australian market have left however some are still operating and have been named such as, FairGo Casino and Emu Casino that operate out of a Curacao license.
The AMCA say that Aussie gamblers spend upwards of $400 million a year on these illegal sites which works out to be a loss of around $100 million in loss of taxes to the government.
Not only this say the AMCA but most do not pay out on big wins or a small proportion of it. The Chairwoman of the AMCA Nerida O’Loughlin said, “We have been targeting illegal gambling services we know are active in the Australian market through complaints received and monitoring. But we expect that list of sites will grow as we investigate more,” Ms O’Loughlin said.
“The ability to have ISPs block illegal websites will be a valuable additional weapon in the ACMA’s arsenal in the fight against illegal online gambling.” She went on to say, “Customers had also experienced illegal operators continuing to withdraw funds from their bank account without authorisation.”
“If you have funds deposited with an illegal gambling site, you should withdraw those funds now.
“Public education is also crucial in deterring Australians from using these sites, given many illegal offshore gambling websites target Australians by using Australian themes and images, such as the Australian flag and native animals,” Ms O’Loughlin finished by saying.
November 07, 2018
Online betting sites crashed in lead-up to Melbourne Cup
Online sports-betting sites crashed nationwide in the lead-up to the Melbourne Cup, the busiest betting event of the year.
Wagering services run by Sportsbet, Ladbrokes and online betting exchange Betfair all went down, with punters temporarily unable to place bets on their smartphone apps or computers.
Twenty minutes before the main race on Tuesday, Tabcorp also reported problems with its third-party payment providers. It is understood the payment issues were fully restored just before the Cup.
Online bookmaker BetEasy, the third-largest provider behind Sportsbet and Tabcorp, was signing up as many as 500 new customers a minute in the lead-up to the 3pm race as a result of its competitors’ technical problems.
Ladbrokes told punters, via its social media channels, that it was doing all it could to bring services back online as soon as possible, but it was unable guarantee they would be available in time for the main race at 3pm. Ladbrokes’ website and app also went down in the run-up to last year’s Melbourne Cup Day, setting off a storm of social media complaints from punters.
Shortly after 2.15pm on Tuesday, Sportsbet’s mobile betting platform was back up and running, while technical teams were continuing to work on the desktop platform. In a statement, Sportsbet said it had experienced technical issues due to “unprecedented demand and we fixed these issues as a priority”. “Hundreds of thousands of our customers enjoyed a punt on the big race,” a spokesman said. “We sincerely apologise to those who experienced issues or inconvenience.”
Betfair’s site crashed temporarily just before 2pm but the company said it was back working again within about five minutes.
For the nation’s wagering industry, Melbourne Cup Day is easily the biggest betting day on the calendar.
Australian sports-betting companies ramp up staffing and technology to cater for the extraordinary volume of bets placed on the day. Australia’s biggest gambling company, Tabcorp, which runs retail and online wagering services, said it expected to process 15 million bets on Tuesday, with a peak of 4300 bets in the busiest single second.
Wagering data from last year's Melbourne Cup Day showed that, in the immediate lead-up to the main race, a peak of 850 bets a second were being placed through the largest online bookmaker, Sportsbet. The busiest single minute saw 26,000 bets placed.
Punters took to social media to vent their frustration at the meltdown on Tuesday afternoon, with some claiming their deposits were taken in the moments before the betting apps crashed.
“So I placed a bet online 10 mins ago and my deposit is gone but bet is stuck in pending telling me to 'check back in a few minutes,” one punter tweeted. “Did it go through or is it lost?”
Ladbrokes apologised for the crash, and said it understood that the timing “couldn't be worse”
One furious punter demanded his bets be refunded, and for his account with Sportsbet to be closed.
According to figures released on Tuesday afternoon, the biggest bet placed via Tabcorp on the Cup was $100,000 on Yucatan at $6/$2.25. The largest placed on the winner, Cross Counter, was $50,000 at $10.
Wagering services run by Sportsbet, Ladbrokes and online betting exchange Betfair all went down, with punters temporarily unable to place bets on their smartphone apps or computers.
Twenty minutes before the main race on Tuesday, Tabcorp also reported problems with its third-party payment providers. It is understood the payment issues were fully restored just before the Cup.
Online bookmaker BetEasy, the third-largest provider behind Sportsbet and Tabcorp, was signing up as many as 500 new customers a minute in the lead-up to the 3pm race as a result of its competitors’ technical problems.
Ladbrokes told punters, via its social media channels, that it was doing all it could to bring services back online as soon as possible, but it was unable guarantee they would be available in time for the main race at 3pm. Ladbrokes’ website and app also went down in the run-up to last year’s Melbourne Cup Day, setting off a storm of social media complaints from punters.
Shortly after 2.15pm on Tuesday, Sportsbet’s mobile betting platform was back up and running, while technical teams were continuing to work on the desktop platform. In a statement, Sportsbet said it had experienced technical issues due to “unprecedented demand and we fixed these issues as a priority”. “Hundreds of thousands of our customers enjoyed a punt on the big race,” a spokesman said. “We sincerely apologise to those who experienced issues or inconvenience.”
Betfair’s site crashed temporarily just before 2pm but the company said it was back working again within about five minutes.
For the nation’s wagering industry, Melbourne Cup Day is easily the biggest betting day on the calendar.
Australian sports-betting companies ramp up staffing and technology to cater for the extraordinary volume of bets placed on the day. Australia’s biggest gambling company, Tabcorp, which runs retail and online wagering services, said it expected to process 15 million bets on Tuesday, with a peak of 4300 bets in the busiest single second.
Wagering data from last year's Melbourne Cup Day showed that, in the immediate lead-up to the main race, a peak of 850 bets a second were being placed through the largest online bookmaker, Sportsbet. The busiest single minute saw 26,000 bets placed.
Punters took to social media to vent their frustration at the meltdown on Tuesday afternoon, with some claiming their deposits were taken in the moments before the betting apps crashed.
“So I placed a bet online 10 mins ago and my deposit is gone but bet is stuck in pending telling me to 'check back in a few minutes,” one punter tweeted. “Did it go through or is it lost?”
Ladbrokes apologised for the crash, and said it understood that the timing “couldn't be worse”
One furious punter demanded his bets be refunded, and for his account with Sportsbet to be closed.
According to figures released on Tuesday afternoon, the biggest bet placed via Tabcorp on the Cup was $100,000 on Yucatan at $6/$2.25. The largest placed on the winner, Cross Counter, was $50,000 at $10.
August 09, 2018
Crown Resorts sues NSW government over iconic Sydney Harbor view
Australia-listed casino operator Crown Resorts Ltd. has challenged the New South Wales (NSW) government to a legal tug-of-war over the iconic Sydney Harbor view.
Crown Resorts sues NSW government over iconic Sydney Harbor viewThe Wall Street Journal reported that Crown Resorts has brought the Barangaroo Delivery Authority (BDA) to court over concerns that any new property developments could obstruct the harbor views from its Barangaroo casino.
Crown is betting on the unobstructed Barangaroo views to attract affluent Chinese gamblers to visit its casinos in Australia after the casino operator has decided to fold up its overseas expansion plans.
In its lawsuit, Crown wants the court to compel BDA to comply with a contract requiring the government to consult any developments that may affect the panoramic views of the iconic Sydney Opera House and Harbor Bridge.
BDA, which is responsible for the management of the Barangaroo area, plans to develop 5.2-hectares of Central Barangaroo district into a public space for recreation, events, and entertainment, as well as residential, retail, and commercial spaces.
The supposed contract obligations “ensure that sight lines from the Harbor Bridge to the Sydney Opera House are retained for the Crown Sydney Hotel Resort,” according to Crown.
“The proceedings seek injunctive relief and declarations against the BDA that, in substance, require the BDA to comply with a number of its contractual obligations under the Crown Development Agreement,” Crown said in a regulatory filing.
Crown wasn’t the only one suing BDA over the iconic Sydney harbor views. Property developer Lendlease also filed an injunction seeking to stop the agency from constructing properties that could block the views of its apartment complex, which is located near Crown Sydney.
Despite filing a lawsuit, Lendlease remained hopeful that the parties would resolve the problem and reach an agreement through a negotiation.
BDA, for its part, claimed that it had been negotiating with Lendlease and Crown about the matter for the past two years. It vowed to defend its position in court, according to the report.
“At all times the Authority has acted in good faith and in accordance with its contractual obligations,” A BDA spokesman told ABC News online.
Crown Resorts sues NSW government over iconic Sydney Harbor viewThe Wall Street Journal reported that Crown Resorts has brought the Barangaroo Delivery Authority (BDA) to court over concerns that any new property developments could obstruct the harbor views from its Barangaroo casino.
Crown is betting on the unobstructed Barangaroo views to attract affluent Chinese gamblers to visit its casinos in Australia after the casino operator has decided to fold up its overseas expansion plans.
In its lawsuit, Crown wants the court to compel BDA to comply with a contract requiring the government to consult any developments that may affect the panoramic views of the iconic Sydney Opera House and Harbor Bridge.
BDA, which is responsible for the management of the Barangaroo area, plans to develop 5.2-hectares of Central Barangaroo district into a public space for recreation, events, and entertainment, as well as residential, retail, and commercial spaces.
The supposed contract obligations “ensure that sight lines from the Harbor Bridge to the Sydney Opera House are retained for the Crown Sydney Hotel Resort,” according to Crown.
“The proceedings seek injunctive relief and declarations against the BDA that, in substance, require the BDA to comply with a number of its contractual obligations under the Crown Development Agreement,” Crown said in a regulatory filing.
Crown wasn’t the only one suing BDA over the iconic Sydney harbor views. Property developer Lendlease also filed an injunction seeking to stop the agency from constructing properties that could block the views of its apartment complex, which is located near Crown Sydney.
Despite filing a lawsuit, Lendlease remained hopeful that the parties would resolve the problem and reach an agreement through a negotiation.
BDA, for its part, claimed that it had been negotiating with Lendlease and Crown about the matter for the past two years. It vowed to defend its position in court, according to the report.
“At all times the Authority has acted in good faith and in accordance with its contractual obligations,” A BDA spokesman told ABC News online.
April 05, 2018
Lottoland sings swan song, but Aussie newsagents aren’t buying it
Online gambling company Lottoland has finally begun singing its swan song, in an attempt to pull at the heartstrings of newsagents before it’s evicted from Australia.
On Thursday, Lottoland has published a full-page newspaper advertisement appealing to newsagents to come to the table and discuss a win-win solution for both parties in the wake of the Australian government’s decision to ban online betting on lotteries and keno.
The ad comes as a letter addressed to newsagents penned by no less than Lottoland CEO Luke Brill, who offered them 20 percent of the profits generated from every bet they refer to the online gambling firm. Newsagents may earn thousands of additional dollars from the proposal, according Brill.
At the same time, Brill said newsagents that took part in the program would have an opportunity to benefit financially from Lottoland bets on overseas lotteries.
“The reality is that the proposed legislation could make life even more difficult for newsagents while reducing choice for hundreds of thousands of customers,” Brill said in a statement. “We want to partner with newsagents to provide our customers with greater choice, in a way that will be fair and profitable for your business.”
Brill then took aim at rival Tatts Group, which it accused of bankrolling local lotteries in their fight against Lottoland.
The Lottoland boss claimed that Tatts is cementing its monopoly in Australia, to the detriment of both the newsagents and players. Their continued operations in Australia encourages both competition and innovation, according to Brill.
If there’s one threat to newsagents’ survival, Brill said that it is no other than Tatts.
“We believe in a level-playing field that encourages rather than restricts competition and innovation. That’s why we want to work with you as a true business partner,” he said.
However, Lottoland’s last-ditch appeal has fallen on Australian Lottery and Newsagents Association’s (ALNA) deaf ears.
In a statement, ALNA CEO Adam Joy said newsagents will never align themselves with a business that lacks consumer protections and doesn’t deliver what it promotes. Joy also dismissed Lottoland’s latest ad to be a desperate PR maneuver.
“Lottoland have spent years denigrating newsagents, and a partnership requires trust. They have repeatedly said that they are not targeting the customers of newsagents, yet this idea along with its entire business model does exactly that,” Joy said.
On Thursday, Lottoland has published a full-page newspaper advertisement appealing to newsagents to come to the table and discuss a win-win solution for both parties in the wake of the Australian government’s decision to ban online betting on lotteries and keno.
The ad comes as a letter addressed to newsagents penned by no less than Lottoland CEO Luke Brill, who offered them 20 percent of the profits generated from every bet they refer to the online gambling firm. Newsagents may earn thousands of additional dollars from the proposal, according Brill.
At the same time, Brill said newsagents that took part in the program would have an opportunity to benefit financially from Lottoland bets on overseas lotteries.
“The reality is that the proposed legislation could make life even more difficult for newsagents while reducing choice for hundreds of thousands of customers,” Brill said in a statement. “We want to partner with newsagents to provide our customers with greater choice, in a way that will be fair and profitable for your business.”
Brill then took aim at rival Tatts Group, which it accused of bankrolling local lotteries in their fight against Lottoland.
The Lottoland boss claimed that Tatts is cementing its monopoly in Australia, to the detriment of both the newsagents and players. Their continued operations in Australia encourages both competition and innovation, according to Brill.
If there’s one threat to newsagents’ survival, Brill said that it is no other than Tatts.
“We believe in a level-playing field that encourages rather than restricts competition and innovation. That’s why we want to work with you as a true business partner,” he said.
However, Lottoland’s last-ditch appeal has fallen on Australian Lottery and Newsagents Association’s (ALNA) deaf ears.
In a statement, ALNA CEO Adam Joy said newsagents will never align themselves with a business that lacks consumer protections and doesn’t deliver what it promotes. Joy also dismissed Lottoland’s latest ad to be a desperate PR maneuver.
“Lottoland have spent years denigrating newsagents, and a partnership requires trust. They have repeatedly said that they are not targeting the customers of newsagents, yet this idea along with its entire business model does exactly that,” Joy said.
July 27, 2017
Aspiring Cop Caught Stealing $125,000 Worth of Chips in the CCTV of Melbourne’s Crown Casino
A man by the name Gunawan Akay had been recently caught by a CCTV camera, stealing over $125,000 in casino chips from the Crown Casino in Melbourne. Following trials in the local court, Akay was sentenced to community correction.
The 38-year-old guy was slapped with a sentence of two years for robbing the casino off $125,000 worth of gaming chips in December last year. Akay later pleaded guilty in the court of law for attempting to grab 25 chips of $5000 each while playing in the Maple Room, an exclusive gambling room featured at the Crown Casino.
The CCTV footage revealed that while the casino employee was busy dealing the hand, Akay dexterity reached out to a pile of casino chips and grabbed a handful before escaping from the room and trying to flee in a taxi.
Claire Quin, the County Judge, stated that Akay had been struggling with a grave financial crisis that might have been the motivation behind carrying out this unsophisticated crime. While sentencing Akay to the two-year community correction order, the judge announced that the former had grabbed the gambling chips from a table in the Maple Room and rushed out of the casino in a bid to flee.
Sources reveal that a terribly guilty Akay lost nearly all of his gambling chips in his attempt to run away and eventually tossed the remaining three chips into the Yarra River in a state of excessive panic. A member of the Gold Signature Crown Rewards, Akay was a regular at the Crown Casino and had been playing with his partner’s cash for over six hours when he planned the doomed attempt at stealing the gambling chips.
In a series of events that led him to commit the amateur crime, Akay had recently witnessed a bank foreclosure on a majority of his properties and was trying to make some money in order to ensure that he and his girlfriend did not have to leave their home due to eviction.
Following the completion of the trial proceedings, Judge Quin remarked that Akay had been terribly contrite and had acknowledged his accountability for the crime, showing that he might have great prospects at early rehabilitation. As per the order, Akay will have to perform supervised work for a total of 150 hours during his correctional stay.
The 38-year-old guy was slapped with a sentence of two years for robbing the casino off $125,000 worth of gaming chips in December last year. Akay later pleaded guilty in the court of law for attempting to grab 25 chips of $5000 each while playing in the Maple Room, an exclusive gambling room featured at the Crown Casino.
The CCTV footage revealed that while the casino employee was busy dealing the hand, Akay dexterity reached out to a pile of casino chips and grabbed a handful before escaping from the room and trying to flee in a taxi.
Claire Quin, the County Judge, stated that Akay had been struggling with a grave financial crisis that might have been the motivation behind carrying out this unsophisticated crime. While sentencing Akay to the two-year community correction order, the judge announced that the former had grabbed the gambling chips from a table in the Maple Room and rushed out of the casino in a bid to flee.
Sources reveal that a terribly guilty Akay lost nearly all of his gambling chips in his attempt to run away and eventually tossed the remaining three chips into the Yarra River in a state of excessive panic. A member of the Gold Signature Crown Rewards, Akay was a regular at the Crown Casino and had been playing with his partner’s cash for over six hours when he planned the doomed attempt at stealing the gambling chips.
In a series of events that led him to commit the amateur crime, Akay had recently witnessed a bank foreclosure on a majority of his properties and was trying to make some money in order to ensure that he and his girlfriend did not have to leave their home due to eviction.
Following the completion of the trial proceedings, Judge Quin remarked that Akay had been terribly contrite and had acknowledged his accountability for the crime, showing that he might have great prospects at early rehabilitation. As per the order, Akay will have to perform supervised work for a total of 150 hours during his correctional stay.
April 20, 2017
Australia mulls “siren to siren” sports betting TV ad ban
Australian betting operators are potentially facing a “siren to siren” ban on advertising during televised live sporting matches, according to local media reports.
On Wednesday, The Australian reported that Communications Minister Mitch Fifield would present a proposal to cabinet on Tuesday that would prohibit television networks from airing betting ads at any time during a live sports contest. Cabinet is expected to approve the proposal.
A similar prohibition was part of a group of gambling initiatives proposed by Independent Sen. Nick Xenophon but these were rejected by a Senate committee last month on the grounds that the federal government had things under control.
Australian free-to-air broadcasters will reportedly be offered reductions in license fees to help offset the expected loss of advertising revenue, but it’s unknown whether subscription TV services will be offered similar incentives to win their support.
Australia’s sporting codes may prove a harder sell. ABC reported that key execs from the Australian Football League and the National Rugby League met with Fifield last week to argue that further advertising restrictions would drastically reduce the value of their media rights deals with betting operators. Cricket Australia is reportedly also lobbying against further curbs.
Malcolm Speed, exec director of the Coalition of Major Professional Participation Sports, told The Australian that media rights were “the sports’ greatest asset.” Speed noted that broadcasters had previously agreed to ban the promotion of live odds during sports broadcasts and further restrictions “will inevitably result in lowering investment in community and participation programs, and grassroots development.”
An unidentified source at a major sports body pointed out that Fifield’s proposed ban “also has the potential to rob sports of product fees,” i.e. the commissions paid by Australian betting operators for taking wagers on individual sports. This source said Fifield’s plan “will result in no reduction in gambling, but a reduction in taxation to state and federal governments.”
Responsible Wagering Australia (RWA), a trade body representing many of the country’s betting operators, has supported a reduction in betting advertising on television, apparently believing that it’s better to support moderate curbs in the hope of avoiding more punitive measures. It’s unclear whether the RWA will support Fifield’s blanket live sports ban.
On Wednesday, The Australian reported that Communications Minister Mitch Fifield would present a proposal to cabinet on Tuesday that would prohibit television networks from airing betting ads at any time during a live sports contest. Cabinet is expected to approve the proposal.
A similar prohibition was part of a group of gambling initiatives proposed by Independent Sen. Nick Xenophon but these were rejected by a Senate committee last month on the grounds that the federal government had things under control.
Australian free-to-air broadcasters will reportedly be offered reductions in license fees to help offset the expected loss of advertising revenue, but it’s unknown whether subscription TV services will be offered similar incentives to win their support.
Australia’s sporting codes may prove a harder sell. ABC reported that key execs from the Australian Football League and the National Rugby League met with Fifield last week to argue that further advertising restrictions would drastically reduce the value of their media rights deals with betting operators. Cricket Australia is reportedly also lobbying against further curbs.
Malcolm Speed, exec director of the Coalition of Major Professional Participation Sports, told The Australian that media rights were “the sports’ greatest asset.” Speed noted that broadcasters had previously agreed to ban the promotion of live odds during sports broadcasts and further restrictions “will inevitably result in lowering investment in community and participation programs, and grassroots development.”
An unidentified source at a major sports body pointed out that Fifield’s proposed ban “also has the potential to rob sports of product fees,” i.e. the commissions paid by Australian betting operators for taking wagers on individual sports. This source said Fifield’s plan “will result in no reduction in gambling, but a reduction in taxation to state and federal governments.”
Responsible Wagering Australia (RWA), a trade body representing many of the country’s betting operators, has supported a reduction in betting advertising on television, apparently believing that it’s better to support moderate curbs in the hope of avoiding more punitive measures. It’s unclear whether the RWA will support Fifield’s blanket live sports ban.
January 20, 2017
How Lottoland is making millions by cornering a new gambling market
One Tuesday around this time last year, businessman Luke Brill was riding the bus on his way to work with his earphones in, half-listening to Triple J, when he heard something that made him pay attention.
The station’s breakfast presenters were talking about the upcoming US Powerball jackpot — a multi-billion dollar lottery draw that was set to break records and become the biggest cash giveaway of all time.
What they didn’t mention, and what no one knew at the time, was that the draw would also lead to the launch of a massive business which in 12 months’ time would be on the way to revolutionising the gambling industry in Australia while raking in more than a million dollars a week.
That business is Lottoland, and Mr Brill is its managing director.
You’ve probably heard of the online lottery betting company by now — its branding is everywhere. The Gibraltar-owned business’s Australian arm has taken out advertising space across television networks in prime-time periods and secured significant sponsorship deals with major sporting events.
But a year ago, no one had heard of its gambling model, and for good reason — it didn’t exist.
Lottoland had been operating in Europe and the UK for three years but the timing of its launch in Australia was a bit of an accident.
“We got the licence to operate on Christmas Eve the year before and had planned on launching around February, but when I heard that this was going to be the largest jackpot in history, we spent the day rushing through things to get ready to launch, rushed out a press release and it just caught fire,” Mr Brill told news.com.au.
“We had no clients to begin with on the Tuesday. Zero. The Powerball draw was on the Thursday and by then we had 250,000 [clients]. It was the best possible start but it took us all by surprise and we weren’t really ready. We spent the rest of January playing catch-up and working out what our strategy was. It would usually happen the other way around.”
The brand didn’t invest in advertising at the time and it didn’t need to. More than a dozen TV and radio spots were devoted to explaining what Lottoland was all about — and there was a lot of explaining to do.
The business was unusual in the gaming and gambling industry operating in Australia at the time, and it still is. It involves betting on lottery outcomes rather than entering the lottery itself.
Players bet on the results of the biggest lotteries around the world, and now local draws too, and using an insurance-based model Lottoland is able to match the prize money offered in those jackpots.
So taking the US Powerball example, Australians weren’t able to buy a ticket for the $2.3 billion jackpot, but through Lottoland they could pay $10.50 to bet that the numbers they would have selected, had they been able to enter, would be picked. Just like buying multiple tickets, players could enter as many times as they liked, and the prize on offer was the same as that of the actual Powerball draw.
The Powerball jackpot sold itself, but without resulting in any major wins for Aussie entrants, it wasn’t great for Lottoland’s customer retention.
“That first 250,000 were almost like Melbourne Cup punters — most of them you’ll never see again” Mr Brill said.
“The initial push for us was ‘play the Powerball’, but that was just one hit, there wasn’t a great understanding of what our product was other than a way to get in on that one jackpot, so after that our advertising and marketing was about trying to educate our customers.”
Lottoland’s entry wasn’t welcomed by competitors who took legal action ahead of its launch which was settled out of court.
Gambling experts have also criticised it saying making lotteries more frequent increases users’ chances of developing a gambling problem.
Senator Nick Xenophon was among its most vocal critics. The anti-gambling politician blamed laws in the Northern Territory, where the company is registered, for allowing it to operate for profit unlike most other lotteries which are run by governments to pay for public services.
“Lottoland has turned into a legal no man’s land and we need to close the loophole,” he told news.com.au at the time of its launch.
“It’s also causing a haemorrhaging of local territories including state-owned ones. We will miss out on money for hospitals and schools because it will bleed government revenue.”
Lottoland says it’s trying to appease some of those critics by “looking for a charity to support”, but the main focus is building its customer-base.
Lottoland is now trying to get across the message that it’s not just US Powerball. It offers betting on other major international jackpots, and regular, local lottery draws as well.
But the main point of difference with existing lottery providers in Australia, as well as its offering of bigger prizes — “why play for a million dollars when you could play for a billion?” — is the online element.
“You can play on your mobile, there’s no real reason to go down to the newsagent. We know a lot of people don’t want to do that. Particularly young people — they don’t do that,” Mr Brill explained.
“People used to go to the bookies, to the TAB to have a bet, now they play on their Sportsbet or Ladbrokes app. The message we’re getting out is why are people going to the newsagent to buy their lottery ticket every week when they can play with us.”
Mr Brill says Lottoland is offering innovation in an area that has been stagnant.
“We are grabbing that younger audience,” Mr Brill said. He added that its customer bases skews towards women.
The company has signed up around 400,000 Australian users and by Mr Brill’s estimate has taken about one per cent share of Australia’s $2 billion lotteries market.
Though the company wouldn’t release its overall revenue for the year, Mr Brill said it was making “in excess of a million a week”.
Lottoland has paid out about $6 million in prizemoney to Australians since its launch, but is yet to declare a major win for one of its players and prove that it has the capacity to play it out.
“That would be the real prize for us,” Mr Brill said.
“We’re hoping for a big winner. Once we’ve paid out, say, $100 million, all those questions about is it legit, are people going to get paid out, they’re all answered.”
The station’s breakfast presenters were talking about the upcoming US Powerball jackpot — a multi-billion dollar lottery draw that was set to break records and become the biggest cash giveaway of all time.
What they didn’t mention, and what no one knew at the time, was that the draw would also lead to the launch of a massive business which in 12 months’ time would be on the way to revolutionising the gambling industry in Australia while raking in more than a million dollars a week.
That business is Lottoland, and Mr Brill is its managing director.
You’ve probably heard of the online lottery betting company by now — its branding is everywhere. The Gibraltar-owned business’s Australian arm has taken out advertising space across television networks in prime-time periods and secured significant sponsorship deals with major sporting events.
But a year ago, no one had heard of its gambling model, and for good reason — it didn’t exist.
Lottoland had been operating in Europe and the UK for three years but the timing of its launch in Australia was a bit of an accident.
“We got the licence to operate on Christmas Eve the year before and had planned on launching around February, but when I heard that this was going to be the largest jackpot in history, we spent the day rushing through things to get ready to launch, rushed out a press release and it just caught fire,” Mr Brill told news.com.au.
“We had no clients to begin with on the Tuesday. Zero. The Powerball draw was on the Thursday and by then we had 250,000 [clients]. It was the best possible start but it took us all by surprise and we weren’t really ready. We spent the rest of January playing catch-up and working out what our strategy was. It would usually happen the other way around.”
The brand didn’t invest in advertising at the time and it didn’t need to. More than a dozen TV and radio spots were devoted to explaining what Lottoland was all about — and there was a lot of explaining to do.
The business was unusual in the gaming and gambling industry operating in Australia at the time, and it still is. It involves betting on lottery outcomes rather than entering the lottery itself.
Players bet on the results of the biggest lotteries around the world, and now local draws too, and using an insurance-based model Lottoland is able to match the prize money offered in those jackpots.
So taking the US Powerball example, Australians weren’t able to buy a ticket for the $2.3 billion jackpot, but through Lottoland they could pay $10.50 to bet that the numbers they would have selected, had they been able to enter, would be picked. Just like buying multiple tickets, players could enter as many times as they liked, and the prize on offer was the same as that of the actual Powerball draw.
The Powerball jackpot sold itself, but without resulting in any major wins for Aussie entrants, it wasn’t great for Lottoland’s customer retention.
“That first 250,000 were almost like Melbourne Cup punters — most of them you’ll never see again” Mr Brill said.
“The initial push for us was ‘play the Powerball’, but that was just one hit, there wasn’t a great understanding of what our product was other than a way to get in on that one jackpot, so after that our advertising and marketing was about trying to educate our customers.”
Lottoland’s entry wasn’t welcomed by competitors who took legal action ahead of its launch which was settled out of court.
Gambling experts have also criticised it saying making lotteries more frequent increases users’ chances of developing a gambling problem.
Senator Nick Xenophon was among its most vocal critics. The anti-gambling politician blamed laws in the Northern Territory, where the company is registered, for allowing it to operate for profit unlike most other lotteries which are run by governments to pay for public services.
“Lottoland has turned into a legal no man’s land and we need to close the loophole,” he told news.com.au at the time of its launch.
“It’s also causing a haemorrhaging of local territories including state-owned ones. We will miss out on money for hospitals and schools because it will bleed government revenue.”
Lottoland says it’s trying to appease some of those critics by “looking for a charity to support”, but the main focus is building its customer-base.
Lottoland is now trying to get across the message that it’s not just US Powerball. It offers betting on other major international jackpots, and regular, local lottery draws as well.
But the main point of difference with existing lottery providers in Australia, as well as its offering of bigger prizes — “why play for a million dollars when you could play for a billion?” — is the online element.
“You can play on your mobile, there’s no real reason to go down to the newsagent. We know a lot of people don’t want to do that. Particularly young people — they don’t do that,” Mr Brill explained.
“People used to go to the bookies, to the TAB to have a bet, now they play on their Sportsbet or Ladbrokes app. The message we’re getting out is why are people going to the newsagent to buy their lottery ticket every week when they can play with us.”
Mr Brill says Lottoland is offering innovation in an area that has been stagnant.
“We are grabbing that younger audience,” Mr Brill said. He added that its customer bases skews towards women.
The company has signed up around 400,000 Australian users and by Mr Brill’s estimate has taken about one per cent share of Australia’s $2 billion lotteries market.
Though the company wouldn’t release its overall revenue for the year, Mr Brill said it was making “in excess of a million a week”.
Lottoland has paid out about $6 million in prizemoney to Australians since its launch, but is yet to declare a major win for one of its players and prove that it has the capacity to play it out.
“That would be the real prize for us,” Mr Brill said.
“We’re hoping for a big winner. Once we’ve paid out, say, $100 million, all those questions about is it legit, are people going to get paid out, they’re all answered.”
March 18, 2016
Australian in-play betting ban set to remain in place until federal election - reports
The Australian government could be set to extend the ban on in-play betting on live sports until at least the next federal election.
According to reports in the Australian media, punters in the country wishing to place in-play wagers on live sports events will only have the option of betting with illegal offshore operators until the election, which could take place as late as January 2017.
In-play betting remains a subject of major debate in the country, with licensed operators pushing for the government to legalise such activities, while other parties and organisations have called for the current ban to remain in place.
Last month, Peter McGuaran, chief executive of Racing Australia, called for the government to introduce a blanket ban on all in-play sports betting.
However, major brands such s Ladbrokes, William Hill and Sportsbet have all spoken out in support of a regulated in-play betting system.
Reports that the ban is likely to remain come after the conclusion of a government-commissioned investigation into replacing the current Interactive Gambling Act 2001.
Major gambling operators, sporting bodies and integrity groups told the inquiry that there is no evidence to support a supposed link between in-play betting and the manipulation of sporting events.
According to reports in the Australian media, punters in the country wishing to place in-play wagers on live sports events will only have the option of betting with illegal offshore operators until the election, which could take place as late as January 2017.
In-play betting remains a subject of major debate in the country, with licensed operators pushing for the government to legalise such activities, while other parties and organisations have called for the current ban to remain in place.
Last month, Peter McGuaran, chief executive of Racing Australia, called for the government to introduce a blanket ban on all in-play sports betting.
However, major brands such s Ladbrokes, William Hill and Sportsbet have all spoken out in support of a regulated in-play betting system.
Reports that the ban is likely to remain come after the conclusion of a government-commissioned investigation into replacing the current Interactive Gambling Act 2001.
Major gambling operators, sporting bodies and integrity groups told the inquiry that there is no evidence to support a supposed link between in-play betting and the manipulation of sporting events.
December 10, 2015
Australia should not ask tech firms to block illegal gambling sites
As the Australian government look at ways of blocking illegal online gambling sites offering their services to Australians, many of the leading online companies say it is impossible to block those sites.
Twitter, Facebook and Google all said to wagering review chairman Barry O’Farrell it is impossible to block offshore online gambling sites and the government should not burden the online tech companies to help to do this.
“We consider there to be fundamental flaws and significant practical difficulties with any attempts to filter the Internet such that it may not be possible to automatically block content,” the companies said in a joint submission to the government under their Digital Industry Group association. “Who would determine whether a service is illegal and would entire websites be blocked if there are both legal and illegal services on the website?”.
Figures show that Australian nationals gamble some $24 billion a year and it is estimate $1 billion is to offshore illegal gambling sites that the government want to stop.
The government want tech companies to install web filtering to block these sites but in a joint statement to the review board the companies say it is unworkable.
Those tech giants also have big concerns around its own legal liability should it move to cut access to commercial websites.
“We have concerns around legal liability in preventing access to commercial websites and question what safe harbours would be provided. In addition, internet filters can be easily circumnavigated and information about how to use virtual private networks (VPNs) is widely available. There is no existing legal precedent in Australia requiring Internet companies that are not ISPs to filter access to websites,” the note to the review board says.
Twitter, Facebook and Google all said to wagering review chairman Barry O’Farrell it is impossible to block offshore online gambling sites and the government should not burden the online tech companies to help to do this.
“We consider there to be fundamental flaws and significant practical difficulties with any attempts to filter the Internet such that it may not be possible to automatically block content,” the companies said in a joint submission to the government under their Digital Industry Group association. “Who would determine whether a service is illegal and would entire websites be blocked if there are both legal and illegal services on the website?”.
Figures show that Australian nationals gamble some $24 billion a year and it is estimate $1 billion is to offshore illegal gambling sites that the government want to stop.
The government want tech companies to install web filtering to block these sites but in a joint statement to the review board the companies say it is unworkable.
Those tech giants also have big concerns around its own legal liability should it move to cut access to commercial websites.
“We have concerns around legal liability in preventing access to commercial websites and question what safe harbours would be provided. In addition, internet filters can be easily circumnavigated and information about how to use virtual private networks (VPNs) is widely available. There is no existing legal precedent in Australia requiring Internet companies that are not ISPs to filter access to websites,” the note to the review board says.
September 11, 2015
Bet365 faces penalties for misleading novice punters over 'free' bets
Online gambling giant Bet365 faces heavy fines for luring new punters with a false promotion that required them to spend up to $1200 before they could recover $200 in "free bets".
Australia's consumer watchdog launched a lawsuit in the Federal Court alleging Bet365, one of the world's largest online betting providers, had engaged in misleading and deceptive conduct by offering the free bets to new customers in its 10-month promotion in 2013-14.
New gamblers were falsely enticed by the advertised "free bets", but were actually required to gamble $1200 before being able to withdraw any winnings, according to the Australian Competition and Consumer Commission.
The Federal Court this week found in favour of the ACCC, ruling that Bet365's Australian and UK companies had misled and deceived customers.
"New customers who had not previously used such types of services were drawn into this web of deception," Justice Jonathan Beach said.
But the ACCC lost its claim against Bet365 Group Limited, the ultimate holding company of the other two businesses.
Court documents show that between March 2013 and February 2014, Bet365's opening webpage displayed the headline offer: "$200 free bets for new customers", and from February this year: "Up to $200 deposit bonus for new customers".
ACCC chairman Rod Sims said the offer meant potentially vulnerable consumers, such as novice gamblers and young people, were being lured to place bets.
"This judgment makes it clear that companies cannot use the word 'free' in offers to consumers where any conditions that seek to neutralise the 'free' nature of the offer are not clearly identified. Inducements like free bets run the risk of signing up new and inexperienced gamblers based on a deceptive claim," Sims said.
Penalties will be determined at a further trial in the Federal Court.
Australia's consumer watchdog launched a lawsuit in the Federal Court alleging Bet365, one of the world's largest online betting providers, had engaged in misleading and deceptive conduct by offering the free bets to new customers in its 10-month promotion in 2013-14.
New gamblers were falsely enticed by the advertised "free bets", but were actually required to gamble $1200 before being able to withdraw any winnings, according to the Australian Competition and Consumer Commission.
The Federal Court this week found in favour of the ACCC, ruling that Bet365's Australian and UK companies had misled and deceived customers.
"New customers who had not previously used such types of services were drawn into this web of deception," Justice Jonathan Beach said.
But the ACCC lost its claim against Bet365 Group Limited, the ultimate holding company of the other two businesses.
Court documents show that between March 2013 and February 2014, Bet365's opening webpage displayed the headline offer: "$200 free bets for new customers", and from February this year: "Up to $200 deposit bonus for new customers".
ACCC chairman Rod Sims said the offer meant potentially vulnerable consumers, such as novice gamblers and young people, were being lured to place bets.
"This judgment makes it clear that companies cannot use the word 'free' in offers to consumers where any conditions that seek to neutralise the 'free' nature of the offer are not clearly identified. Inducements like free bets run the risk of signing up new and inexperienced gamblers based on a deceptive claim," Sims said.
Penalties will be determined at a further trial in the Federal Court.
September 03, 2015
Betfair used by gangland figure Horty Mokbel for money laundering
Leading online gambling agency Betfair is being used by underworld figure Horty Mokbel as an online bank and suspected vehicle for laundering millions of dollars of drug money, raising serious integrity concerns.
Fairfax Media has learned that Mokbel and his associates have been shifting funds between accounts linked to his associates and a Melbourne telecommunications company, Roctel. Mokbel controls a large chunk of the company, having invested at least $1 million.
The use of Betfair raises questions for the James Packer-owned gambling agency, as Mokbel, who is a convicted drug trafficker and the brother of jailed drug lord Tony Mokbel, has been banned by Victoria Police from all racetracks and Crown Casino since 2004.
But police are also in the spotlight for failing to ban one of Mokbel's key associates, Paul Sequenzia, from racetracks, despite the prominent owner of harness racers being linked to the cobalt doping scandal, and a race fixing syndicate.
Pictures have emerged of Sequenzia at Cranbourne on August 25, watching his horse Fake Smile win – the fifth win in five starts for the horse.
Sequenzia pocketed a share of $3848 in prize money on August 25, taking Fake Smile's earnings to almost $20,000. Fake Smile could become the most successful horse owned by Sequenzia since Sushi Sushi, which earned more than $1.1 million before it was put down last year.
Fairfax revealed in July that Sequenzia was linked to the cobalt scandal that is gripping the racing industry, as it is believed Dr Adam Matthews – the vet described as the "Stephen Dank" of the equine world for his links to horse doping – owed him money.
It was revealed in February that he had links to possibly doped horses in NSW.
On August 5, a cobalt inquiry heard that harness racing identity John "The Ghost" Camilleri sent a text message in January claiming that Sequenzia, who he called "Swayze", had placed a winning $25,000 bet on a horse after Camilleri told him it had been dosed with "a bag of magic", meaning cobalt. Camilleri later said he had lied in the text message.
Sequenzia, the brother-in-law of slain gangland figure Mark Moran, also owned the first horse to test positive to the substance EPO, and has been sanctioned by racing authorities for a string of offences, including misleading them about the ownership of Sushi Sushi.
He is a long-term friend of Horty Mokbel, who has been trying to rebuild his wealth since being released from prison in 2011. A court heard in early 2012 that Mokbel earned a paltry $368 a week working in a gym while he was on parole.
But, according to an underworld source, Mokbel has funnelled about $3 million through Betfair by using accounts opened by Roctel principals and their partners. It is suspected the funds are the proceeds of drug trafficking.
Roctel is based in a small office at a Northcote business park.
Mokbel was one of the first people banned from all gaming venues under special police powers introduced in 2004, but being added to the blacklist failed to curtail a keen interest in gambling and the races.
His latest criminal charge related to a 2011 prison fight which started because of a bet on an NRL match between the Melbourne Storm and North Queensland Cowboys. A pouch of tobacco had been wagered by prison inmates.
In 2007, assets from the $1.5 million sale of champion racehorse Pillar of Hercules were frozen when it was found the horse was bought with the proceeds of crime on behalf of a Mokbel syndicate.
The images of Sequenzia at Cranbourne show him freely associating with others trackside and in what appears to be an owners area, and gambling at on-course betting machines.
Another image from 2012 shows Mokbel and Sequenzia reuniting after the former was released from prison on drug offences.
Betfair, an internet betting agency, did not respond to a request for comment. Betfair Australasia is wholly owned by James Packer's Crown Resorts, which bought the firm from the London-listed Betfair last year.
Betfair claims to be the world's largest online betting exchange. Customers open online accounts using minimal personal information, and deposit funds to gamble. That money can be withdrawn to a linked bank account on the customer's request.
Victoria Police would not comment on why individuals had not been issued exclusion notices, but said the criteria for banning included being suspected of using racecourses for criminality, or whether it was considered to be in the public interest.
Those who are banned have their photos provided to racing authorities and track security staff.
A spokeswoman said the force was aware online betting accounts were being used to launder money. The gaming company said it worked "collaboratively" with law enforcement agencies
Fairfax Media has learned that Mokbel and his associates have been shifting funds between accounts linked to his associates and a Melbourne telecommunications company, Roctel. Mokbel controls a large chunk of the company, having invested at least $1 million.
The use of Betfair raises questions for the James Packer-owned gambling agency, as Mokbel, who is a convicted drug trafficker and the brother of jailed drug lord Tony Mokbel, has been banned by Victoria Police from all racetracks and Crown Casino since 2004.
But police are also in the spotlight for failing to ban one of Mokbel's key associates, Paul Sequenzia, from racetracks, despite the prominent owner of harness racers being linked to the cobalt doping scandal, and a race fixing syndicate.
Pictures have emerged of Sequenzia at Cranbourne on August 25, watching his horse Fake Smile win – the fifth win in five starts for the horse.
Sequenzia pocketed a share of $3848 in prize money on August 25, taking Fake Smile's earnings to almost $20,000. Fake Smile could become the most successful horse owned by Sequenzia since Sushi Sushi, which earned more than $1.1 million before it was put down last year.
Fairfax revealed in July that Sequenzia was linked to the cobalt scandal that is gripping the racing industry, as it is believed Dr Adam Matthews – the vet described as the "Stephen Dank" of the equine world for his links to horse doping – owed him money.
It was revealed in February that he had links to possibly doped horses in NSW.
On August 5, a cobalt inquiry heard that harness racing identity John "The Ghost" Camilleri sent a text message in January claiming that Sequenzia, who he called "Swayze", had placed a winning $25,000 bet on a horse after Camilleri told him it had been dosed with "a bag of magic", meaning cobalt. Camilleri later said he had lied in the text message.
Sequenzia, the brother-in-law of slain gangland figure Mark Moran, also owned the first horse to test positive to the substance EPO, and has been sanctioned by racing authorities for a string of offences, including misleading them about the ownership of Sushi Sushi.
He is a long-term friend of Horty Mokbel, who has been trying to rebuild his wealth since being released from prison in 2011. A court heard in early 2012 that Mokbel earned a paltry $368 a week working in a gym while he was on parole.
But, according to an underworld source, Mokbel has funnelled about $3 million through Betfair by using accounts opened by Roctel principals and their partners. It is suspected the funds are the proceeds of drug trafficking.
Roctel is based in a small office at a Northcote business park.
Mokbel was one of the first people banned from all gaming venues under special police powers introduced in 2004, but being added to the blacklist failed to curtail a keen interest in gambling and the races.
His latest criminal charge related to a 2011 prison fight which started because of a bet on an NRL match between the Melbourne Storm and North Queensland Cowboys. A pouch of tobacco had been wagered by prison inmates.
In 2007, assets from the $1.5 million sale of champion racehorse Pillar of Hercules were frozen when it was found the horse was bought with the proceeds of crime on behalf of a Mokbel syndicate.
The images of Sequenzia at Cranbourne show him freely associating with others trackside and in what appears to be an owners area, and gambling at on-course betting machines.
Another image from 2012 shows Mokbel and Sequenzia reuniting after the former was released from prison on drug offences.
Betfair, an internet betting agency, did not respond to a request for comment. Betfair Australasia is wholly owned by James Packer's Crown Resorts, which bought the firm from the London-listed Betfair last year.
Betfair claims to be the world's largest online betting exchange. Customers open online accounts using minimal personal information, and deposit funds to gamble. That money can be withdrawn to a linked bank account on the customer's request.
Victoria Police would not comment on why individuals had not been issued exclusion notices, but said the criteria for banning included being suspected of using racecourses for criminality, or whether it was considered to be in the public interest.
Those who are banned have their photos provided to racing authorities and track security staff.
A spokeswoman said the force was aware online betting accounts were being used to launder money. The gaming company said it worked "collaboratively" with law enforcement agencies
April 14, 2015
Australia to generate over $6 billion in gambling revenues
New research has shown that Australia will generate over $6 billion a year in gambling revenues by the end of this decade. Fuelled by a growing Asian market and a VIP market moving to new locations IBISWorld the market research company say that Australia has the potential to generate $6.2 billion a year by 2021.
“IBISWorld believes the opening of these new casinos is reflective of strength in an industry being bolstered by high levels of domestic spending as well as increasing levels of foreign gambling dollars,” it said.
Australia has not had a new casino since 1996, when the Reef Hotel Casino opened in Cairns, IBISWorld senior industry analyst Spencer Little said.
However with James Packer building his $1.3 billion Barangaroo on Sydney Harbour resort and the $8.2 billion Aquis Great Barrier Reef Resort on the Gold Coast the estimates of revenues reaching $6 billion a year may not be that far from reality.
“Both groups have signalled their intention to build luxurious, resort-style casinos to attract wealthy VIP gamblers from south-east Asia,” Mr Little said.
The resorts will both be up and running by 2019 and the estimates for making the $6 billion will all depend on the success of both resorts.
“IBISWorld believes the opening of these new casinos is reflective of strength in an industry being bolstered by high levels of domestic spending as well as increasing levels of foreign gambling dollars,” it said.
Australia has not had a new casino since 1996, when the Reef Hotel Casino opened in Cairns, IBISWorld senior industry analyst Spencer Little said.
However with James Packer building his $1.3 billion Barangaroo on Sydney Harbour resort and the $8.2 billion Aquis Great Barrier Reef Resort on the Gold Coast the estimates of revenues reaching $6 billion a year may not be that far from reality.
“Both groups have signalled their intention to build luxurious, resort-style casinos to attract wealthy VIP gamblers from south-east Asia,” Mr Little said.
The resorts will both be up and running by 2019 and the estimates for making the $6 billion will all depend on the success of both resorts.
February 23, 2015
Sportingbet rebranded as William Hill in Australia
Bookmaker William Hill will officially launch in the Australian market tomorrow when its Sportingbet.com.au business is rebranded.
Existing Sportingbet clients will be migrated to the global betting giant’s new local website, WilliamHill.com.au. New clients will also be able to sign-up through the site.
William Hill acquired the Sportingbet Australia business, which included Centrebet, in March 2013, and the acquisition of TomWaterhouse.com followed in August 2013. Centrebet and TomWaterhouse.com will also be rebranded as William Hill in due course.
Tom Waterhouse, CEO William Hill Australia, commented:
“This is the exciting first step towards merging three Australian betting brands into one highly regarded, international brand. Placing all of our assets behind one brand will allow us to provide our customers with the best possible wagering experience and more diverse betting opportunities. William Hill has a rich history in betting on racing and sports, and the brand will enable us to leverage decades of global wagering expertise and understanding to help us establish the best possible product for punters in Australia.”
Founded in the UK in 1934, William Hill today employs more than 17,000 staff around the world and has more than 240 employees in Australia.
The company has over 2300 betting shops throughout the UK, and operates businesses in countries including Italy, Spain and the US.
Existing Sportingbet clients will be migrated to the global betting giant’s new local website, WilliamHill.com.au. New clients will also be able to sign-up through the site.
William Hill acquired the Sportingbet Australia business, which included Centrebet, in March 2013, and the acquisition of TomWaterhouse.com followed in August 2013. Centrebet and TomWaterhouse.com will also be rebranded as William Hill in due course.
Tom Waterhouse, CEO William Hill Australia, commented:
“This is the exciting first step towards merging three Australian betting brands into one highly regarded, international brand. Placing all of our assets behind one brand will allow us to provide our customers with the best possible wagering experience and more diverse betting opportunities. William Hill has a rich history in betting on racing and sports, and the brand will enable us to leverage decades of global wagering expertise and understanding to help us establish the best possible product for punters in Australia.”
Founded in the UK in 1934, William Hill today employs more than 17,000 staff around the world and has more than 240 employees in Australia.
The company has over 2300 betting shops throughout the UK, and operates businesses in countries including Italy, Spain and the US.
August 15, 2014
Bet365 accused of misleading punters with 'free' and 'bonus' offers
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.
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.
June 10, 2014
Sportsbet go for World Cup stunt
Sportsbet in Australia finding that gamblers were not rushing to bet on their national football team in the forthcoming World Cup in Brazil, went for a Paddy Power style stunt with a 46-metre high hot air balloon in the image of Brazil’s famous Christ the Redeemer statue.
Gamblers in Australia have not been too inspired in betting on the countries Socceroos team to do well in the tournament so Sportsbet took to the skies over Melbourne with the giant air balloon to generate some interest.
However not all were impressed with the stunt with Twitter being split on the use of a Christian religious figure being used to promote gambling.
one user joked “He has amazing healing powers!” while another labelled it “revolting and offensive”.
The Anglican Archbishop of Melbourne, Dr Philip Freier, was unimpressed with the stunt.
“The Sportsbet campaign is simply a blatant attempt to boost business. The fact that it has sought to exploit Christian symbols shows both the power of those symbols and the company’s desperation to be relevant,” Dr Freier said in a statement.
“But the campaign is hypocritical because the Jesus who overturned the money-changers’ tables in the Jerusalem Temple would not encourage betting. And it is incoherent, in claiming the Socceroos are so inadequate that they need a miracle but patrons should nevertheless bet on them, while suggesting that the company is the author of miracles.”
Sportsbet.com.au spokesman Matthew Campbell said the stunt was to get people behind the Socceroos.
“The statue’s an icon of Brazil and all we’re doing is bringing it to Australia.”
However not all were impressed with the stunt with Twitter being split on the use of a Christian religious figure being used to promote gambling.
one user joked “He has amazing healing powers!” while another labelled it “revolting and offensive”.
The Anglican Archbishop of Melbourne, Dr Philip Freier, was unimpressed with the stunt.
“The Sportsbet campaign is simply a blatant attempt to boost business. The fact that it has sought to exploit Christian symbols shows both the power of those symbols and the company’s desperation to be relevant,” Dr Freier said in a statement.
“But the campaign is hypocritical because the Jesus who overturned the money-changers’ tables in the Jerusalem Temple would not encourage betting. And it is incoherent, in claiming the Socceroos are so inadequate that they need a miracle but patrons should nevertheless bet on them, while suggesting that the company is the author of miracles.”
Sportsbet.com.au spokesman Matthew Campbell said the stunt was to get people behind the Socceroos.
“The statue’s an icon of Brazil and all we’re doing is bringing it to Australia.”
April 07, 2014
William Hill announces technical migration of Australian brands into one platform
William Hill has announced the complete migration of its three acquired Australian brands - Centrebet, Tom Waterhouse and Sportingbet Australia. The integration will see all brands managed under a single platform, promoting unified technologies and products to its Australian customer base.
William Hill will maintain all three brands active, which counters previous industry speculation that the operator would be looking to condolidate its Australian brands into one.
2013 saw William Hill acquire all three brands in order to enter the Australian online sport betting market. The acquisition saw William Hill become the third biggest online gambling operator behind Paddy Power and Tabcorp. The combined acquisition contributed £86.7 million in net revenue and £12 million in profit for 2013 performance.
William Hill will re-launch Sportingbet.com.au with a new mobile friendly responsive site. The operator further announced that the re-launch would be supported by an ongoing Australian tv advertising campaign which would be promoted by former Australian international cricketer Shane Warne (former brand ambassador for 888 Poker).
William Hill will maintain all three brands active, which counters previous industry speculation that the operator would be looking to condolidate its Australian brands into one.
2013 saw William Hill acquire all three brands in order to enter the Australian online sport betting market. The acquisition saw William Hill become the third biggest online gambling operator behind Paddy Power and Tabcorp. The combined acquisition contributed £86.7 million in net revenue and £12 million in profit for 2013 performance.
William Hill will re-launch Sportingbet.com.au with a new mobile friendly responsive site. The operator further announced that the re-launch would be supported by an ongoing Australian tv advertising campaign which would be promoted by former Australian international cricketer Shane Warne (former brand ambassador for 888 Poker).
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