Controversial online betting exchange BetFair could be in breach of NSW gaming legislation with its use of online advertising targeting national audiences.
The Australian operation of BetFair, which is half-owned by James Packer’s PBL, is based in Tasmania where it acquired a licence to operate in 2005. Under the Tasmanian licence, punters across Australia can place bets through the online exchange, but BetFair can’t advertise or sponsor races outside the island state.
Recently, BetFair ramped up its lobbying for legislative changes in other states, with NSW premier Morris Iemma now promising an independent review of betting exchanges and related “advertising laws”.
But it appears BetFair is already taking matters into its own hands, running an online ad campaign aimed at a national audience. The campaign, created by NetX, is running nationwide, including NSW.
Calls to the office of Graham West, NSW minister for gaming & racing, suggest the online campaign could be in breach of NSW gaming laws.
“Licensed bookmakers can advertise in NSW, unlicensed ones can’t,” said one source from the NSW Government Office of Liquor, Gaming & Racing. When asked why BetFair ads were appearing on racing websites accessible to NSW audiences, he replied: “Well, it’s illegal.”
But Andrew Twaits, director of corporate & business affairs at BetFair, disagrees. “We’ve never had a complaint or been asked by any regulator to explain any of our branding available on websites in Australia.
“Our view is the ad restrictions that exist in some states [including NSW] are invalid,” Twaits said. “We consider [the campaign] to be well within the bounds of what’s allowed.”
Twaits argues the legislation in question doesn’t cover betting exchanges and that online advertising for betting exchanges is common practice.
Nielsen Online estimates BetFair spends as much as $1 million annually on online advertising, although Twaits said that figure is “well off”.
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