Sportsbet Facing Class Action Over In-Game Betting Allegations
Gamblers in Australia have launched a class action against Sportsbet, seeking to recover millions of dollars lost through in-game betting. The lawsuit, filed in the Supreme Court of Victoria by law firm Maurice Blackburn, accuses the betting operator of engaging in misleading and deceptive conduct through its “fast code” service.
Allegations Against Sportsbet
The class action revolves around Sportsbet’s “fast code” feature, which allowed bettors to place in-game wagers. The lead plaintiff, Jeremy Bergman, reportedly lost AUD 2,307 using the service between August 2019 and December 2021. Maurice Blackburn claims that thousands of other customers could be eligible to join the lawsuit, with total losses potentially reaching millions.
The lawsuit does not cover bets placed on horse, harness, or greyhound racing but focuses specifically on sports betting after the commencement of matches. Under Australian law, in-play betting on sporting events is generally prohibited online to prevent match-fixing and protect problem gamblers, with such wagers only permitted via telephone.
Regulatory Scrutiny on In-Game Betting
The action against Sportsbet comes amid increased scrutiny of the Australian betting industry. In 2023, the Australian Media and Communications Agency (ACMA) found several major operators, including Sportsbet, Ladbrokes (Entain Group), and bet365 (Hillside), to be in breach of federal laws restricting in-game betting through mobile apps. These findings could pave the way for further regulatory actions and litigation.
Additionally, AUSTRAC, Australia’s financial crime regulator, has initiated legal proceedings against Entain, the parent company of Ladbrokes and Neds, for alleged breaches of anti-money laundering and counter-terrorism financing regulations.
Industry Challenges and Regulatory Environment
The Australian betting industry faces mounting pressure following the federal government’s recent decision to remove research and development tax incentives for gambling and tobacco companies. Moreover, the implementation of stricter gambling advertising regulations, promised by Prime Minister Anthony Albanese, has been delayed by over 18 months, leaving the industry in a state of regulatory uncertainty.
Maurice Blackburn’s principal lawyer, Elizabeth O’Shea, stated that the firm’s position is that Sportsbet’s in-game betting activities were conducted in violation of the law.
The outcome of this class action could have significant implications for the future of in-play betting services in Australia and may set a precedent for further legal challenges within the sector.
