Sydney-based betting operator SportChamps faces a hefty AU$17,500 fine, equivalent to US$11,481, marking its sixth conviction for breaching gambling advertising laws. The penalty follows a comprehensive investigation by Liquor & Gaming NSW, revealing SportChamps’ culpability in inducing individuals to gamble and open betting accounts through its website and Facebook pages.
Background:
SportChamps, a repeat offender, pleaded guilty to two offenses under the Betting and Racing Act in Downing Centre Local Court. The advertisements in question, featuring enticing statements such as “Punt for free. Learn the game!” and “Receive a free bet each day,” were found to violate New South Wales (NSW) law by luring individuals into opening betting accounts.
Jane Lin, Executive Director of Regulatory Operations at Liquor & Gaming NSW, expressed deep concern over SportChamps’ disregard for gambling laws, highlighting the operator’s five previous convictions for similar offenses spanning 2017 to 2021.
Marketing Strategy and Legal Violations:
SportChamps’ aggressive marketing strategy aimed at attracting new customers and expanding market share blatantly ignored NSW’s gambling laws. Once users created accounts, they were directed to the SportChamps Tournament Betting Lobby webpage, where both free and paid gaming tournaments were accessible. The process involved soliciting credit card details and deposit amounts, potentially escalating individuals’ engagement in gambling activities.
Lin emphasized that while wagering operators have legal avenues for advertising, the promotion of inducements such as increased odds or bonus bets to attract new account openings is strictly prohibited.
Broader Regulatory Landscape:
In a related development, Liquor and Gaming NSW conducted a compliance blitz on pubs and clubs in NSW, revealing that nearly 99% of inspected venues were free of external gambling-related signage. This crackdown aligns with the NSW Government’s comprehensive reform on gaming room advertising. Non-compliant venues may face penalties of up to AU$11,000 per offense.
The initiatives are part of a holistic approach by the NSW Government, including measures like reducing cash input limits for electronic gaming machines, capping gaming machine entitlements, introducing responsible gaming officers, and overseeing a cashless gaming trial through an independent panel of experts.
SportChamps’ repeated violations and the substantial fine imposed by Liquor & Gaming NSW underscore the importance of adherence to gambling advertising laws. The regulatory landscape is evolving, and operators must align their marketing strategies with legal requirements to ensure responsible and compliant practices. The NSW Government’s broader reform initiatives signal a commitment to curbing gambling-related harm and promoting responsible gaming within the community.