Sportsbet Sued for Alleged Illegal In-Play Betting Practices
Sportsbet, one of Australia’s leading betting platforms and owned by Flutter Entertainment, is facing a class action lawsuit.
Spotsbet app icon on smartphone screen. Sportsbet faces class action over alleged illegal betting practices.
LISTEN TO THIS ARTICLE:The lawsuit, which has been brought by Maurice Blackburn Lawyers in the Supreme Court of Victoria, accuses the company of engaging in unlawful in-play betting practices through its “Fast Code” service and is seeking to recover millions of dollars lost by customers between December 24, 2018, and December 24, 2024.
Under Australian law, in-play bets on ongoing sports events are only permitted when placed via a phone call. Maurice Blackburn alleges that Sportsbet’s “Fast Code” feature circumvented this rule by requiring users to generate a code online and provide it over the phone. According to the lawsuit, this process violated regulations, as the interaction did not meet the legal requirement of being conducted entirely over the phone.
The law firm claims that Sportsbet misled customers about the legality of the service and deliberately deceived them in direct violation of Australian consumer laws.
Lawsuit Shines a Spotlight on Regulatory Loopholes
The case comes amid increased scrutiny of gambling regulations in Australia. The government recently banned the use of credit cards and cryptocurrencies for online betting, but critics argue that enforcement of gambling laws is inconsistent and that some betting operators may have exploited loopholes in live betting regulations.
Sportsbet’s “Fast Code” service had already drawn attention during a 2023 investigation by the Australian Communications and Media Authority (ACMA). The inquiry found that Sportsbet and other companies had violated federal laws by offering in-play betting options through their platforms. Although changes were made by the sportsbooks in order to comply with regulations, Maurice Blackburn argues that Sportsbet’s earlier actions caused significant financial losses for customers.
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Thousands of Gamblers Said to Have Suffered Losses
The lead plaintiff in the case reportedly lost over $2,300 using the “Fast Code” service between 2019 and 2021. Maurice Blackburn aims to represent thousands of other gamblers who suffered losses during the six years in question. The lawsuit excludes wagers on horse, harness, and greyhound racing, which fall under separate regulations.
If successful, the case could see Sportsbet forced to reimburse millions to affected customers and have a lasting impact on Australia’s online betting industry.
Flutter Entertainment is yet to comment on the lawsuit. However, given the potential financial and reputational damage at stake, it is expected that the company will mount a vigorous defence.
RELATED TOPICS: Regulation
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