UBet convicted of illegal advertising - ahead of new AANA code

Arvind Hickman
By Arvind Hickman | 30 June 2016
 

Sports betting agency UBet has been convicted for illegal advertising that promoted alcohol consumption while gambling as well as offering inducements that are illegal in the NSW.

The betting shop pleaded guilty to two advertising breaches after an investigation by Liquor & Gaming NSW. Ubet has been fined $3,300 and will also pay Liquor & Gaming NSW additional court costs of $4,500.

NSW’s Betting and Racing Regulation 2012 prohibits licensed wagering operators from publishing advertising that promotes the consumption of alcohol while gambling as well as advertising that induces NSW residents to participate in any gambling activity.

However, gambling regulation is carried out on a state by state basis.

A new AANA code, which comes into effect in July, will provide betting shops with more guidance at a national level on what is acceptable content for wagering ads.

Tomorrow (Friday), AdNews will publish a special investigation into the sports betting gambling industry and the proliferation of advertising, messaging and the social consequences.

In the case for advertising that promotes alcohol consumption while gambling, UBet Tas Pty Ltd published a video advertisement on YouTube called UBET Punters Academy. Students of gambling are shown learning how to gamble “head to head” on National Rugby League matches.

The students are holding partly filled glasses of alcohol and one is using his mobile phone while being advised that if he bets “head-to-head” he could have his bet returned even if he loses.

Liquor & Gaming NSW inspectors found that UBet’s website published an advertisement that offered “1,800 bonus points” for joining “UBET+Rewards Program”.

Deputy chief magistrate Jane Mottley described the company’s claim the advertisements were withdrawn when brought to its attention and that there had been a misunderstanding of the advertisements’ placement as “naïve”.

Liquor & Gaming NSW’s acting director of compliance operations Paul Irving said the case served as a warning to betting agencies of the need to comply with NSW legislation.

UBet’s conviction is the latest in a string of prosecutions of sports betting companies, including Unibet, Bet 365, CrownBet, Ladbrokes, Sportsbetting.com.au and ClassicBet.

Court action is still pending for a number of other licensed wagering operators.

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