Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
PlayUp Interactive, a prominent name in the Australian gambling space, has recently been hit with a record-breaking fine of AU$ 586,000 by Liquor & Gaming New South Wales (NSW). This huge penalty, imposed on August 20, 2024, underscores the severity of the breach and highlights the strict regulatory environment governing the gambling industry in NSW. The fine was levied after 33 illegal advertisements were discovered on one of PlayUp’s websites, violating state gambling promotion regulations.
The Nature of the Illegal Advertisements
The advertisements in question appeared on PlayUp’s DraftStars website. These ads included various forms of inducements to gamble, which are strictly prohibited under NSW law. Specifically, the ads encouraged users to gamble more and offered incentives to open new accounts. This kind of promotional activity is in direct violation of NSW’s stringent advertising regulations, which are designed to protect consumers from the potential harms associated with gambling.
Even if it’s to advertise top no deposit bonuses. In reality, casino players and punters don’t need adverts to get great offers since they can find all sorts of deals from the updated listing by AussieBonuses.com
Under NSW law, any form of inducement to gamble is illegal. This includes offers of increased odds, bonus bets, or any other incentives to encourage people to either begin gambling or increase their gambling activities. The intention behind these regulations is to minimize the risk of gambling addiction and to ensure that advertising does not exploit vulnerable individuals. PlayUp’s failure to adhere to these rules resulted in the substantial fine that now stands as the largest of its kind in NSW’s history.
The Consequences of Legal Proceedings
The charges against PlayUp Interactive were brought before the Downing Centre Local Court. The outcome was a hefty fine of AU$ 586,000, reflecting the seriousness of the breaches. Dimitri Argeres, the director of compliance and enforcement at Liquor & Gaming NSW, emphasised how the regulator takes a zero-tolerance approach to such violations. He also highlighted the importance of regulatory compliance in maintaining the integrity of the gambling industry and protecting consumers from potentially harmful practices.
Broader Regulatory Context
The fine imposed on PlayUp Interactive is not an isolated incident but rather part of a broader crackdown on illegal gambling advertisements in NSW. Since 2016, Liquor & Gaming NSW has imposed more than AU$1 million in fines on various operators.
This demonstrates the regulator’s consistent and robust approach to enforcing advertising laws. Back in 2023, the operator Betr received an AU$210,000 fine for infringements surrounding its launch publicity, and earlier in 2024, another operator, SportsChamps, was fined AU$17,500 for similar violations, further illustrating the regulator’s commitment to maintaining high standards of compliance.
This consistent approach sends a clear message to all industry operators: breaches of the law will not be tolerated, and significant financial penalties will be imposed on those who fail to comply.
PlayUp’s Challenges Beyond Australia
While PlayUp’s Australian operations continue under the PlayUp and DraftStars brands, the company has faced some major challenges in the United States. The previous year, PlayUp lost its sports betting license in New Jersey and was forced to shut down its Colorado operations. These setbacks were linked to a failed acquisition by FTX, a now-defunct crypto trading platform, and a Special Purpose Acquisition Company (SPAC) deal with IG Acquisition Corp that fell through.
Despite these difficulties, PlayUp’s Australian business remains operational. However, concerns have been raised that the issues plaguing PlayUp in the US could have broader implications for its operations in Australia. The recent legal turmoil may indicate growing regulatory scrutiny that could impact the company’s future activities. The Australian gambling landscape is becoming more tightly regulated, and operators like PlayUp, therefore, must ensure they are fully compliant to avoid similar penalties going forward.
