Sportsbet Faces Class Action Over Alleged Illegal In-Play Betting Practices

Sportsbet, one of Australia's leading online gambling operators and a subsidiary of Flutter Entertainment, is confronting a class action lawsuit alleging the facilitation of unlawful in-play betting through its "Fast Code" service.

Sportsbet Faces Class Action Over Alleged Illegal In-Play Betting Practices

The lawsuit, initiated by Maurice Blackburn Lawyers in the Supreme Court of Victoria on December 24, 2024, contends that Sportsbet’s Fast Code service enabled customers to place bets during live sporting events by generating a unique code via the company’s app or website.

This code would then be communicated during a telephone call to finalize the bet. Under the Interactive Gambling Act 2001, in-play betting is prohibited in Australia unless conducted entirely by telephone.

The plaintiffs argue that the use of digital platforms to generate betting codes circumvents this requirement, rendering the practice illegal.

Elizabeth O’Shea, Principal at Maurice Blackburn, stated,

We believe that Sportsbet’s use of the Fast Code service is not just an attempt to circumvent important laws aiming to prevent gambling harm; it is also illegal because key information about the bet is communicated by punters rather than by a voice call.

Elizabeth O’Shea

Scope of the Class Action

The class action seeks to recover losses for individuals who placed in-play bets using the Fast Code service between December 24, 2018, and December 24, 2024. It excludes racing events, focusing solely on other sports. The plaintiffs allege that Sportsbet engaged in misleading or deceptive conduct by representing the Fast Code service as legal, in violation of Australian Consumer Law.

Regulatory Scrutiny and Industry Implications

This legal action follows previous findings by the Australian Communications and Media Authority (ACMA) in December 2023, which determined that operators, including Sportsbet, breached interactive gambling rules through the use of Fast/Quick Codes to facilitate in-play betting.

The ACMA found that the betting information encapsulated in these codes had been communicated via websites or apps, rather than wholly through phone calls, as required by law. Following the investigation, operators took steps to ensure compliance with relevant interactive gambling rules.

In 2022, Sportsbet faced a $2.5 million fine for sending unlawful spam to consumers, highlighting ongoing compliance challenges within the company.

Industry and Consumer Impact

The outcome of this lawsuit could have significant ramifications for the Australian gambling industry, potentially prompting stricter enforcement of existing regulations and influencing how operators design and offer betting services.

For consumers, the case underscores the importance of understanding the legality of betting services and the avenues available for recourse in instances of alleged misconduct.

As the case progresses, it will serve as a critical examination of the balance between technological innovation in gambling services and adherence to regulatory frameworks designed to protect consumers from potential harm.