Ladbrokes and Neds fined $13,320 for accepting in-play online bets
Sports betting companies Ladbrokes and Neds were fined by the Australian media regulator on Thursday for illegally taking 78 in-play bets in the middle of a LIV golf tournament.
Placing online bets while sporting competitions are ongoing, also called in-play betting, is regarded as illegal in Australia. The Australian Communications and Media Authority (ACMA) discovered that the companies owned by Entain accepted 78 bets while the LIV golf tournament in Bangkok was live last year.
Entain was fined $13,320 for both companies, the highest penalty the ACMA could issue under the Interactive Gambling Act 2001.
“Entain Australia acknowledges receipt of the ACMA infringement notice and has accepted the penalty,” a spokesperson for Entain stated.
“Entain is disappointed that its internal processes did not pick up this timing error and will continue to review and refine procedures in an effort to avoid future incidents.”
The ACMA stated that the case with Entain was its first time issuing an infringement notice relating to a violation of the in-play betting regulation.
Entain explained that the breach was a result of an incorrect start time for the sports event it imputed into its systems. Due to this, Ladbrokes accepted 59 bets, and Neds received 19 bets after the event went live.
The gambling company revealed that it was made aware of the situation after a customer alerted them around three hours after the event of the day had begun.
In response to Entain’s claim, Nerida O’Loughlin, the ACMA chair, emphasized the importance of the ban on online in-play betting to protect vulnerable groups.
“Online in-play betting increases the risk for those people experiencing gambling harm as it provides fast outcomes and allows for higher frequency of bets,” O’Loughlin said.
“Entain is a highly experienced wagering operator, and it is disappointing it did not have internal procedures in place to prevent or detect the error.”
“Acma made it clear to the industry last year that they must have robust systems in place to ensure that online in-play bets are not made available or accepted.”
The spokesperson for Entain said that the company was disappointed that its internal processes failed to identify the timing error and intended to “review and refine procedures in an effort to avoid future incidents.”
The federal government banned the practice of online in-play over two decades ago; however, punters are allowed to make in-person bets at Tabcorp outlets or over the phone. If gamblers were allowed to place bets during games, the presence of scouts that inform punters of key occurrences would lead to a distortion of the market.
Entain was issued a monetary penalty of almost $80,000 last month for serious license violations and failing to stop financial adviser Gavin Fineff during his gambling spree. Fineff was found to have stolen millions of dollars from several clients to fuel his gambling addiction.
The gambling company is also currently being investigated by Australia’s anti-money laundering watchdog. It will be fined around $22 million per breach as well as other regulatory interventions if found culpable.
