UBET guilty of Illegal Online Sportsbook Promos in NSW, again

Officials in Australia have made it very clear that they will no longer tolerate violations of the law when it comes to online gambling services. Using inducements to attract new punters and reward existing members is not permitted in New South Wales (NSW). Apparently UBET, the online sportsbook wing of Tatts Group, needed a second lesson in that legislative rule.

On January 10, UBET was found guilty of publishing illegal online sportsbook promos that fall into the classification of unlawful gambling ads. This is the second time in less than a year that the company has been convicted and fined for violating that particular law.

An official notice was published on the website of the NSW Department of Justice, Liquor and Gaming Division that confirmed Tuesday’s ruling in Downing Centre Local Court:

“Sports betting company UBET TAS Pty Ltd has been convicted and fined $2,000 for publishing illegal advertising that offered NSW residents inducements to participate in gambling or to open a betting account.”

UBET’s Illegal Online Sportsbook Promo

The release noted that UBET plead guilty to the charges, admitting to unlawfully posting an online sportsbook promo on its website back in September of 2016. The advertisement read:

“NFL FUTURES MONEY BACK, place a Super Bowl winner bet and if your team makes the Conference Championships and doesn’t go on to win, Money Back up to $25!”

Second Time The Charm For UBET?

UBET was slapped with a similar court ruling and monetary penalty of $3,300 for violating the advertisements laws of NSW back in June 2016. In that case, the online sportsbook was accused, and subsequently convicted, of publishing illegal gambling ads that encourage punters to consume alcohol while betting, as well as promoting inducements to participate in the operator’s gambling activities.

Minimise Harm, Promote Responsibility

An amendment to NSW Betting and Racing Regulation that went into effect in January 2016 moved to prohibit any authorized gambling supplier from publishing advertisements through any media channel that induced Aussies to wager real money, or open an online wagering account.

A spokesperson for the NSW Liquor and Gaming division explained that the gambling advertisement restrictions were introduced to help minimize any potential harm from gambling, prevent adverse social effects, and to promote the conduct of more responsible gambling operations.

The NSW government released a Fact Sheet that explains what type of gambling advertisements are now prohibited in the Australian territory. It explains the meaning of inducements for new and existing punters, as well as giving specific examples of what is, and is not, considered an illegal gambling ad.

For instance, publishing an ad that reads, “New customer sign up bonus – deposit $50 and bet with $200,” is not permitted. An appropriate welcome is exemplified as, “Bet with Lucky Betting Club today”.

First time deposit bonuses, refer a friend bonuses, cash back refunds, reward points that can be redeemed for cash or free-bet value, special odd reductions, raffles for prizes with monetary value (i.e. all-expenses paid trip) – these are all deemed unlawful promotions per NSW’s new betting regulations.

While the government believes this will help reduce harm and promote a more responsible interface, Australia’s regulated online sportsbooks fear it will make the industry too difficult to compete in, especially while unauthorized offshore operators continue to provide these types of promotions to Australian customers.