The Australian franchise of the UK betting firm, bet365, has been slapped with a $2.75 million fine for misleading gamblers. The betting company has been found guilty of using a “false” advertisement to attract new customers in 2013 to 2014. The federal court also indicated that the “$200 free bets” was misleading and deceitful, which then means that it led to the penalty.
According to the report presented to the courts, the betting company failed to display the conditions of the advert, thus deceiving the gamblers. One of the “hidden” conditions was that in order for gamblers to qualify for the $200 free bet, the customers had to first deposit real money into their accounts.
Rod Sims, the chairman of the Australian Competition and Consumer Commission (ACCC), the organization who opened the case, said the penalties should serve as a warning to all the betting companies. He said businesses should know that it is not acceptable to run “free” promotions as the headline of the advert unless all the terms and conditions are fully disclosed to the consumer.
How does betting operate at bet365?
In sports betting, it is a common practice that the players will have to place real money bets above certain odds in order to qualify for the bet promotion. According to the judge, this was the downfall of bet365’s promotion.
Rod Sims said that the new players started complaining about the way the rules “suddenly changed” once they wanted to place the bets using the “free $200” that they thought they were entitled to. According to the report, the betting firm quickly amended the details on their website although, by this time, the ACCC had already looked into the case.
According to Rod Sims, this was just an act to avoid a fine, although in the end they lost the case.