Australia’s leading fantasy sports operator, Draftstars, has been hit with a hefty fine of AU$586,000 (US$394,691) for offering illegal inducements in its advertisements. The penalty was imposed by Sydney’s Downing Centre local court on PlayUp Interactive, the company behind the Draftstars platform, after it was found guilty of promoting incentives such as free bets in 33 ads.
Under New South Wales (NSW) law, gambling operators are prohibited from providing any form of incentive to encourage individuals to sign up for an account or refer others. Liquor & Gaming NSW Director of Compliance and Enforcement, Dimitri Argeres, emphasized that companies like PlayUp must be fully aware of their advertising obligations and warned that regulators would not hesitate to impose significant penalties for any violations.
PlayUp is a major player in the Australian fantasy sports market, offering contests for popular leagues like the AFL and NRL. The previous largest fine for similar offenses was AU$210,000 (US$141,442) imposed on Betr last year for breaching regulations on 14 occasions.
This recent penalty comes amid growing concerns about the impact of gambling advertising in Australia, with lawmakers considering implementing a complete ban on such promotions across various media channels including radio, television, and streaming platforms. Former prime ministers have also called for stricter regulations to address the issue.
Overall, the case of Draftstars and PlayUp serves as a reminder of the strict regulations governing the gambling industry in Australia and the consequences of failing to comply with advertising standards. Companies operating in this sector must adhere to the law and ensure that their marketing practices are in line with legal requirements to avoid facing significant fines and penalties.