PlayUp Interactive, the operator behind the popular brand Draftstars, now faces a record $586,000 fine for violating New South Wales (NSW) gambling laws. The Downing Centre Local Court issued the fine, marking a significant crackdown by Liquor & Gaming NSW on illegal gambling ads. This penalty underscores the strict regulations in NSW and the severe consequences of offering unlawful inducements to gamble.
The Offense: Illegal Gambling Ads
Liquor & Gaming NSW charged PlayUp Interactive with 33 offenses related to illegal gambling ads. These ads, prominently displayed on their website, aimed to entice individuals to gamble more frequently or open new betting accounts. NSW gambling laws explicitly ban such practices, especially when targeting those without existing betting accounts.
Dimitri Argeres, Liquor & Gaming NSW’s Director of Compliance and Enforcement, emphasized the importance of following these laws. He stated, “NSW bans the advertisement of any offer of an inducement to participate in a betting activity, including an inducement to bet more frequently, to persons who do not hold a betting account with the betting operator.”
The Consequences: A Record Fine
Liquor & Gaming NSW imposed the $586,000 fine on PlayUp Interactive, signaling a zero-tolerance policy for illegal gambling ads. This penalty highlights the seriousness of the offense and serves as a stern warning to other operators. While companies like PlayUp Interactive can legally promote their gambling products, they cannot offer inducements—such as bonus bets or increased odds—to lure individuals into opening new betting accounts.
NSW law sets the maximum penalties for such offenses at $110,000 for corporations and $11,000 for individuals. Argeres noted that this case exemplifies the strong penalties that can be imposed, reinforcing the state’s commitment to upholding its gambling laws.
Broader Implications for the Gambling Industry
This fine against PlayUp Interactive comes amid growing national discussions on gambling advertising regulations across Australia. Increasing support for federal laws could implement a blanket ban on gambling ads across broadcast TV, streaming services, and radio. This movement reflects rising concerns about the impact of such advertisements on vulnerable individuals and communities.
In a similar case in 2023, the operator Betr faced a $210,000 fine for 14 infringements related to illegal inducements in advertisements. These escalating fines signal a broader crackdown on gambling advertising practices, stressing the importance of strict legal compliance for operators.
Conclusion
The record-breaking $586,000 fine on PlayUp Interactive highlights significant enforcement of NSW’s gaming laws. As scrutiny of the industry intensifies, this case is a stark reminder to all operators about the importance of compliance. The stringent penalties underscore the state’s commitment to protecting its residents from the potential harms of betting and ensuring that companies like PlayUp Interactive are held accountable for their actions.