Betr’, a gambling company backed by News Corp, could face significant financial implications if the Penrith Panthers win the NRL grand final. This situation arises from a generous inducement the company offered when it launched in late 2022, which attracted a record fine and regulatory criticism.
The Inducement Offer:
Upon its launch, Betr’ offered odds of 100-1 on the Penrith Panthers winning a third consecutive grand final, with bets capped at $10. However, the Penrith Panthers are now considered strong contenders to win the grand final, and this outcome appears likely, according to most analysts.
Betr’ made similar inducements for other sporting events, including the Melbourne Cup, the Cox Plate, and AFL markets. These inducements were part of the company’s strategy to attract customers away from established gambling companies.
Regulatory Response and Fine:
Betr’ faced regulatory scrutiny and a record fine of $210,000 for media advertisements promoting the 100-1 odds in News Corp outlets. Liquor and Gaming NSW’s executive director, Jane Lin, stated that the fine was appropriate due to “significant breaches of the law” by Betr’.
In response to the fine, Betr’ stopped its inducement campaign and did not contest the penalty. The company may have avoided a lengthy court process by agreeing to pay the fine.
Mitigating Potential Loss:
To mitigate potential financial losses resulting from a Panthers victory, Betr’ has offered cash-out options to customers who had placed bets on Penrith. These offers allow customers to receive a portion of their potential winnings in cash in exchange for canceling their bets on the Panthers.
News Corp’s Involvement:
Betr’ was initially backed by News Corp, which intended to utilize its media assets to promote the company. However, News Corp distanced itself from Betr’ and put the company up for sale. News Corp executives also resigned from Betr’s board.
News Corp reported approximately $51.2 million in losses to affiliates in its international accounts for the last six months of 2022, with a share of these losses attributed to Betr’.
Betr’ faces potential financial challenges due to its inducement offer and regulatory fines, especially if the Penrith Panthers win the NRL grand final. The company has taken steps to limit its exposure by offering cash-out options to customers. This situation highlights the regulatory complexities and financial risks associated with inducement offers in the gambling industry.