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Record fine for wagering company Betr over gambling advertisements

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Sports wagering company Betr has been fined $210,000 by Liquor & Gaming NSW for breaches of NSW’s wagering laws in its promotional material during its launch last year.

Betr offered 100-1 and 20-1 odds on major events including the Melbourne Cup, Cox Plate and NRL and AFL markets as part of its launch in October 2022. The odds were advertised in newspapers, on radio and television, and online.

Liquor & Gaming NSW reached the view that these advertisements breached NSW laws prohibiting the advertisement of any offer of an inducement to participate in a gambling activity, including an inducement to open a betting account or bet more frequently.

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As a result, the regulator has issued 14 penalty infringement notices totalling $210,000 which Betr has elected to pay. The $210,000 in penalties represents the largest ever fine issued to a wagering operator for offering inducements in NSW.

Liquor & Gaming NSW Executive Director Regulatory Operations & Enforcement, Jane Lin, said Betr was issued with a significant fine due to the regulator’s concerns that the conduct constituted significant breaches of the law.

“This company tried to attract a new customer base and establish a significant market share with promotions that we consider crossed the line, using inducements that had the potential to cause harm to the community,” Ms Lin said.

“In many cases, such promotions can only be legally offered to betting account holders who, unlike the general public, have made a conscious decision to open an account and receive this information.

“Wagering operators can legally advertise their products in a variety of ways but they can’t advertise or promote inducements such as offers of enhanced odds or bonus bets to entice people to open a betting account.”

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Betr voluntarily ceased the advertising campaign when contacted by Liquor & Gaming NSW. By Betr paying the penalty notices, the matter has now been finalised without a court process.

It comes as wagering company SportChamps has been convicted of posting illegal gambling advertisements on Facebook, Twitter, Instagram and its website, as a result of an investigation by Liquor & Gaming NSW.

In Downing Centre Local Court on Monday 27 March 2023, the company was fined $40,000 and ordered to pay $14,000 in costs for breaching NSW gaming laws. This is the third time SportChamps has been prosecuted, following a $2000 fine in 2018 and a $2500 fine in 2019.

The prosecution related to advertisements via the sportschamps.com.au website and social media that offered cash prizes for games requiring membership, special odds and bonus cash prizes, free bets and a ‘refer a friend’ promotion.

“Gambling operators like SportChamps that try to get around these restrictions are acting unlawfully and increase the risks of gambling harms,” Ms Lin said.

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“Offering free bets on Facebook and Instagram, including a refer a friend promotion, shows a complete disregard for the rules and the well-being of those in our community who didn’t consent to receive gambling advertising.”

“Liquor & Gaming NSW has a zero-tolerance approach to the publication of illegal gambling inducements and we will continue to proactively monitor television, radio, print and online gambling advertising to ensure all providers are complying with the restrictions in the Betting and Racing Act 1998,” Ms Lin said.

A court may impose a maximum penalty of $110,000 (per offence) for a corporation and $11,000 for an individual who publishes a prohibited gambling advertisement, while each penalty notices carries a fine of $15,000 .

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Australia

NSW: Minns Government Moves to Ban Gambling Advertising from Trains

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The Minns Government has moved to ban gambling advertising on public transport in NSW.

The prohibition applies to Transport owned and controlled assets, including internal and external advertising on trains, metro, buses, light rail, train stations and ferry terminals.

Transport operates one of the largest portfolios of advertising assets across Australia. This includes 798 advertising boards at Sydney train stations, 49 road facing digital billboards, adverts on up to 3711 urban buses, 76 trams and across the Tangara train fleet.

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The ban extends to all casino, lottery and online betting advertising.

The NSW Government will now work with multiple advertising contract holders to implement the required changes over the next 12 months.

Transport’s advertising suppliers must ensure that all advertising material complies with all applicable laws, accepted industry standards and codes of conduct established by the advertising industry for example, the Australian Association of National Advertisers (AANA) Advertiser Code of Ethics and AANA Code of Ethics Practice Note.

There are also additional rules that apply to Transport’s contract holders. These include a ban on political advertising on all assets, which applies equally to all political parties.

Where assets are not owned by Transport (e.g. bus stops, retail outlets or nearby private property), the NSW Government will work with the relevant entitles to see how their advertising can align with the gambling advertising ban.

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This is the latest in a suite of reforms introduced by the Minns Labor Government to reduce gambling harm. The reforms include:

• reducing the statewide gaming machine entitlement cap in June 2023

• banning political donations from clubs with electronic gaming machines on 1 July 2023

• reducing the cash input limit on new gaming machines from $5000 to $500 on 1 July 2023

• banning all external gambling signage in venues on 1 September 2023

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• banning the placement of any signage or advertising relating to gaming machines either on, or visible from an ATM or EFTPOS terminal with cash withdrawal facilities and introduced Responsible Gambling Officers for venues with more than 20 machine entitlements, on 1 July 2024

• requiring Automatic Teller Machines (ATMs) or EFTPOS terminals that allow cash withdrawals to be placed at least 5m from the entry to a gaming room and not be visible from any machine or entry to a gaming room, from 1 January 2025

• established an Independent Panel to conduct a trial of cashless gaming in pubs and clubs throughout 2024

• committing $100 million to harm minimisation – investing in research, treatment, services and reform.

Minister for Transport Jo Haylen said: “Gambling advertising has been a common sight on our public transport for a couple of years now, and I’m pleased our Government is taking action to remove it. Parents are rightly worried about the impact it has on their kids, so its not something that we think that needs to be on our transport network.

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“With over 3500 buses, close to 800 advertising assets at train stations, as well as advertising on light rail and trains, Transport’s advertising contracts are vast. Because of the scale it will take some time to implement this change, but we will be working closely with our contract partners over the next 12 months to get this done.”

Minister for Gaming and Racing David Harris said: “Removing gambling advertising from public transport is another demonstration of the Minns Labor Government’s commitment to reducing gambling harm in NSW.

“This move will reduce the public’s exposure to gambling advertising and builds on the suite of reforms the government has introduced over the past 20 months to reduce harmful impacts of gambling.”

The post NSW: Minns Government Moves to Ban Gambling Advertising from Trains appeared first on European Gaming Industry News.

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Australia

VGCCC: Bookmaker Fined for Customer Safety Breaches

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Registered online bookmaker VicBet has been fined $130,000 for 2 breaches of its customer care obligations.

Announcing the fine, Victorian Gambling and Casino Control Commission (VGCCC) CEO Annette Kimmitt AM reminded the gambling industry of the potential for people to experience severe harm when rules are not followed.

“Breaches can have serious consequences, not only in terms of punitive actions against the companies we catch out, but for people whose lives are affected by this behaviour,” Ms Kimmitt said.

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“It is an egregious betrayal of trust, for example, to continue to send marketing materials to a person who has self-excluded from a gambling venue or closed a betting account.”

The VGCCC’s investigations into complaints about VicBet found the bookmaker had:

• offered and provided a $1,800 bonus bet to a customer after they asked for their betting account to be closed in September 2022. VicBet was fined $50,000.

• repeatedly sent gambling promotional material to a customer after they permanently self-excluded from VicBet in March 2020. The penalty was an $80,000 fine.

It is an offence for a bookmaker to encourage or offer any credit, voucher or reward, or other benefit to induce an account holder to keep an account open after they have requested its closure.

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Similarly, sending correspondence or promotional material to customers who have self-excluded contravenes the Victorian Bookmakers’ Association Code of Conduct.

“On these occasions, VicBet failed to live up to both its legal and social licences to operate, which include minimising the risk of harm to customers,” Ms Kimmitt said.

“Industry must respect the wishes of people who decide to have a break from, or quit, gambling. This means taking all reasonable steps to enforce harm prevention initiatives that customers commit themselves to, such as self-exclusion programs.”

VicBet was given the opportunity to “show cause” as to why disciplinary action should not be taken. Submissions from its legal representative were considered prior to a determination being made.

The post VGCCC: Bookmaker Fined for Customer Safety Breaches appeared first on European Gaming Industry News.

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Australia

Michael Fitzsimons Joins Tabcorp as Chief Wagering Officer

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Tabcorp Holdings Limited has appointed Michael Fitzsimons as its Chief Wagering Officer.

Mr Fitzsimons will oversee all core wagering functions including digital, retail, tote, trading, product and marketing. The position is part of the company’s evolved Executive Leadership Team structure, which was announced in December last year. The simpler structure will ensure all wagering functions will fall under one executive.

Mr Fitzsimons has over 20 years of global sports betting experience across the EU, US and Asia. He is currently Executive Director Wagering at Hong Kong Jockey Club (HKJC) where he leads strategy, trading, marketing, data and product development for fixed odds, parimutuel and lottery products.

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His current role encompasses oversight of one of the world’s largest totes, including the World Pool platform, along with Risk Management of China Sports Lottery’s 120,000 betting branches. Prior to his role at the HKJC, Mr Fitzsimons was Director of International Trading and Operations at The Stars Group. During this time, he successfully launched the PokerStars Sportsbook and relaunched SkyBet in Germany and Italy. Mr Fitzsimons is on the executive of the World Tote Association (WoTA).

Tabcorp Managing Director and Chief Executive Officer elect, Gillon McLachlan, said: “Michael Fitzsimons is one of the world’s most sought after wagering executives and brings extensive global sports betting experience to Tabcorp. He has a deep knowledge of international sports betting, trading and tote. Michael is a rare find – he knows digital and retail wagering and is one of the few people in the world who can connect both to grow a wagering product.

“The creation of a Chief Wagering Officer is a significant uplift in wagering capability within our executive team. The simpler vertical structure brings all levers that grow wagering together under one executive to ensure first class execution.”

Mr Fitzsimons is expected to commence in the first half of 2025. His appointment is subject to relevant regulatory and probity approvals.

The post Michael Fitzsimons Joins Tabcorp as Chief Wagering Officer appeared first on European Gaming Industry News.

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