Liquor & Gaming New South Wales (NSW) has fined PlayUp Interactive more than AU$500,000 for 33 illegal adverts on one of its websites.
The 33 illegal ads on a site for PlayUp’s DraftStars site included inducements to gamble, or gamble frequently, and inducements to open a betting account. Any sort of inducement to gamble contravenes NSW advertising regulations.
The charges, brought in the Downing Centre Local Court, resulted in a fine of AU$586,000 (£303,261/€355,331/US$393,485) for PlayUp.
Zero tolerance to advertising breaches in NSW
Liquor & Gaming NSW director compliance and enforcement Dimitri Argeres said the ruling showed the regulator continued to take a zero tolerance approach to regulatory breaches.
“Wagering operators like PlayUp Interactive are able to legally advertise their products in a variety of ways,” he said. “However, 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’s the responsibility of betting service providers to ensure such gambling adverts do not appear in NSW.”
Consistent approach to rule-breakers
PlayUp Interactive is by no means the first operator to face action over illegal advertising in NSW. It is however the first fined since January, when SportsChamps paid an AU$17,500 penalty for similar inducements to gamble.
Since 2016 operators have paid more than $1m in fines through cases brought by Liquor & Gaming NSW.
PlayUp’s US struggles
PlayUp’s Australian business has continued to operate across the PlayUp and DraftStars brands in spite of some well-publicised struggles in the US market. The business lost its New Jersey sports betting licence in July last year and shut down its Colorado book, amid claims a buyer was waiting in the wings.
That buyer has not materialised. A sale to now-stricken crypto trading platform FTX collapsed leading to a lawsuit against its former US CEO that was ultimately thrown out. A special purpose acquisition company (SPAC) combination with IG Acquisition Corp then died after IG pulled out of talks.
In July last year some employees suggested the US struggles reflected wider issues affecting its Australian business, although there have been no updates since.
