Online betting operator PlayUp Interactive, trading as Draftstars, has been fined AU$586,000 (nearly $400,000) for offering free bets to potential players.
The operator received a record penalty for illegally promoting gambling inducements in multiple advertisements. PlayUp Interactive was found to have offered free bets and other incentives to attract players in 33 ads displayed on its website.
Sydney’s Downing Center Local Court imposed the fine after the company was found guilty of all 33 offenses.
In New South Wales, it is illegal to offer incentives to open betting accounts, refer friends, maintain an account, or agree to receive gambling advertising.
Liquor & Gaming NSW Director of Compliance & Enforcement, Dimitri Argeres, said online betting operators were well aware of the legislation in NSW regarding inducements.
“NSW bans the advertisement of any offer of an inducement to participate in a gambling activity, including an inducement to bet more frequently, to persons who do not hold a betting account with the operator,” Argeres said.
“Wagering operators like PlayUp Interactive are allowed to legally advertise their products in various ways, but they can’t advertise or promote inducements such as offers of increased odds or bonus bets to entice people to open a betting account.
“It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW.
“Liquor & Gaming NSW will continue to take a zero-tolerance approach to these offenses, and this sentence shows that strong penalties can apply,” noted the official.
Draftstars, a fantasy sports betting app, was acquired by PlayUp in 2018 from CrownBet, which later merged into Sportsbet.
Sydney-based PlayUp also operates in New Zealand, India, and the US. It is Australia’s largest daily fantasy sports provider and an approved betting operator for major sports organizations like the NRL, AFL, and Cricket Australia.
The AU$586,000 fine imposed on PlayUp surpasses the AU$210,000 ($141,000) penalty given to Betr in 2023 for 14 similar infringements related to inducements in advertisements.
