16 Dec

Court finds Tabcorp Guilty of Illegal Gambling Promotions

Tabcorp is one of the most famous companies in all of Australia. In recent months, things were looking awfully bright for the lottery, keno, horse and sports betting behemoth. Laws to limit competition from overseas gambling sites, and a proposed merger deal with its biggest hometown rival, Tatts Group, were a huge boosts for company morale.

That high came crashing down Friday when the wager giant was found guilty of publishing illegal gambling ads.Australia gaming giant Tabcorp guilty of illegal gambling ads

The court case stemmed from allegations that advertisements in a local newspaper and online via the Tabcorp website, published in August 2015, violated Australian gambling laws. Those laws prohibit operators from using inducements to encourage residents of NSW to gamble or open new betting accounts.

The ad in question promoted bonus bets and other rewards to new and existing members of the Tabcorp player registry. The company vehemently denied any wrongdoing, but was found guilty on all three counts Friday by the Sydney Downing Centre Local Court.

Following the judgment, the court elected to postpone sentencing until February of 2017.

Tabcorp wasn’t the only Australia gaming firm to come under fire recently for illegal gambling promotions. A throng of other bookmakers licenced to operate in the country are facing similar claims, including Bet365, ClassicBet, Ladbrokes, Unibet and Sportsbetting.com.au.

Roller Coaster Times for Tabcorp

Once the dominate leader in the Australia gaming and wagering market, worth at least $20 billion annually, Tabcorp and it’s closest rival, Tatts Group, saw their market share slipping drastically as internationally-located online operators like William Hill and SportsBet moved in. Making matters worse, unregulated offshore operators allow Aussies to play casino games, as well as place in-play bets on sports – something Australia gambling law does not permit over the internet.

There’s a new piece of legislation on the table that would eliminate competition from unregulated websites. The law would require international websites to obtain a licence before accepting Aussie punters, and comply with all Australian gambling laws (i.e. no online casino games, in-play betting, etc).

While that measure is expected to pass with flying colors, Tabcorp is also looking to offset losses in market share by spending billions to acquire and merge with Tatts. That would create a wagering dynasty worth over $11 billion.

Last week, a challenger arose with a slightly higher bid for Tatts, and while analysts believe Tabcorp’s offer is still better, they also predicted more bids may come from international rivals like Will Hill and Ladbrokes.

At the same time, Tabcorp and Tatts are lobbying hard for Australia to reject a push from online bookmakers to allow in-play betting. That service can only be offered at a retail shop – one area of the Australia gaming market Tabcorp still dominates. In-play betting is currently considered a form of illegal gambling when done online.

Australia’s largest retail bookmakers have a lot of support in parliament on that issue. Social Services Minister Alan Tudge said, β€œThe government does not intend to further expand the online betting market in Australia by legalising online in-play betting. We think there’s enough problems with gambling already, before giving people the ability to bet on every moment of every sport across Australia from your living room.”