Online betting provider ordered to pay $5,000 to Gambler's Help for breaching law

The Victorian Gambling and Casino Control Commission (VGCCC) today successfully prosecuted an online wagering service provider for offering a reward as an inducement to open a betting account, which is prohibited under Victorian gambling laws.

BetEasy, trading as BetEasy Pty Ltd, was placed on a 12-month good behaviour bond and ordered to pay $5,000 to Gambler’s Help for breaching the Gambling Regulation Act 2003 (the GR Act) when it appeared in the Melbourne Magistrates’ Court today. It was also ordered to pay the VGCCC’s costs of $4,400.

Section 4 . 7 . 10 of the GR Act prohibits wagering service providers from offering any credit, voucher or reward as an inducement to open a betting account.

Between 22 October 2019 and 15 June 2020, BetEasy ran an advertising campaign which offered new customers a free three-month subscription to a sports streaming service.

New customers did not have to place bets in order to receive the free subscription, but they could only access the free subscription by opening an account. The VGCCC began investigating the offer after an advertisement on BetEasy’s website was brought to its attention.

The relevant maximum financial penalty for this offence was $3,304, but Magistrate Stary said this financial penalty was too low in this case.

He noted that BetEasy should have been aware the offer breached the law, that there had been a change in social mores and it would be more appropriate to order the defendant to enter a good behaviour bond with a condition to pay a substantial contribution to Gambler’s Help.

However, he determined that no conviction would be recorded against BetEasy, given it entered a guilty plea at the earliest opportunity, it had no relevant prior history and the outcomes in related comparative cases.

BetEasy, which was based in the Northern Territory, has since merged with Sporstbet.

The charge could be brought in Victoria because BetEasy’s webpages containing the reward offer could be accessed or downloaded here and the Court accepted that this amounts at law to an offer being made in the state.

VGCCC Executive Director Compliance Adam Ockwell said the prosecution was a reminder that when conducting gambling advertising, strict requirements apply and wagering service providers must make sure they know the law and are meeting their obligations.

“Wagering service providers need to take care to ensure that their offers don’t operate to induce individuals to open betting accounts.

“As Magistrate Stary noted, BetEasy should have been aware its offer of a reward as an inducement to open a betting account was a breach of the law, and we will act when we find wagering service providers who are  offending.”