Australian Online Betting Operator Fined $400K: Record Penalty for Illegal Gambling Inducements

Online betting operator PlayUp Interactive has been hit with a record fine of AU$586,000 (approximately US$400,000) for illegal promotion of gambling inducements. The Sydney Downing Center Local Court levied the penalty after the company was found guilty of 33 offenses related to offering free bets and other incentives through its advertisements.

PlayUp Interactive, trading under the name Draftstars, was found to have breached New South Wales (NSW) laws by promoting these inducements across multiple ads on its website. Under NSW regulations, it is illegal for betting operators to offer incentives to open accounts, refer friends, or maintain existing accounts, as well as to advertise such promotions.

Dimitri Argeres, Director of Compliance & Enforcement at Liquor & Gaming NSW, emphasized that online betting operators are fully aware of the legal restrictions. “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 was quoted as saying in an August 20, 2024 report published by AGBrief.

Argeres added that while operators like PlayUp Interactive can legally promote their products, they must refrain from advertising inducements such as increased odds or bonus bets. “It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW,” he said. He also noted that Liquor & Gaming NSW will maintain a zero-tolerance stance on such violations.

Draftstars, a fantasy sports betting platform, 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 and is a prominent daily fantasy sports provider in Australia. It holds approval as a betting operator for major sports organizations including the NRL, AFL, and Cricket Australia.

The fine imposed on PlayUp Interactive significantly exceeds the AU$210,000 penalty given to Betr in 2023 for similar inducement-related violations.

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