‘A young guy went too far, went rogue’: Sports betting agency faces closure over racy ad campaign

A sports betting agency faces being shut down after violating gambling advertising laws with a racy social media campaign that featured an infamous picture of rugby league star Valentine Holmes with a bag of white powder, as well as pornographic imagery and slogans.

Colossalbet has pleaded guilty to five breaches of the NSW Betting and Racing Act after charges were brought against it by Liquor and Gaming NSW at Sydney’s Downing Centre Local Court.

A recreation of one of the Colossalbet social media advertisements that landed the bookmaker in hot water.Credit: Stephen Kiprillis

The online bookmaker drew the attention of the industry regulator with an advertising spree it ran on Facebook under the banner Punthub using a similar logo to the porn streaming site Pornhub.

The promotional material included the use of the notorious photograph of Holmes with a bag of white powder in his mouth which led to the Queensland and Australian representative player being fined $25,000 and suspended for a match.

“Just a cheers with the winning TAB ticket in the gob, after a big win! What’s the big deal? Check out our new APP,” said the post, published on September 10, 2023, the same day Holmes shared the controversial image, and on the Facebook page until October 26.

The company made a series of other posts on Facebook and Instagram that week including a photo of two people having sex and a picture of another woman on her knees looking up at a man’s crotch with a sexually suggestive caption.

Colossalbet has markets on horse racing as well as sports and elections.Credit: Getty Images

The charges of unlawfully publishing prohibited gambling-related advertisements were filed against Ryman Racing, a licensed betting operator that trades as Colossalbet. Prosecutors argued the ads were visible to social media users who did not have a betting account with Ryman Racing between October 22 and October 26, 2023.

According to court documents, Racing NSW approved the use of the sub-brand Punthub in July 2023 but Liquor and Gaming NSW determined that the ads on the page were “published otherwise than in accordance with decency, dignity and good taste”.

Ryman Racing’s sole director, Sydney betting industry veteran Mark Ryman, said the ads had been posted by a young employee who was dismissed immediately.

“A young guy went too far, went rogue with what he posted,” he said. “I don’t think it was funny but is it indecent? No. It was a harmless mistake. As soon as they told us, we took it straight down.”

Ryman argued the Holmes photo was already in the public domain and the ads had not been seen widely – the promotion with the image of Holmes had 300 laughing emojis and likes below it and 83 comments – “yet they’re going on like it was splashed on the front page of the Herald.”

But he said his bigger concern was the prospect of a fine of up to $110,000, the maximum financial sanction for a corporation. The maximum fine for an individual is $11,000.

“I’m a sole trader,” the 62-year-old said. “I’m not Tabcorp, I’m not Sportsbet, I’m not Bet365. I’d have to shut the business if they fined me [as a corporation].”

Colossalbet specialises in horse racing, offering personalised bets, but also has extensive markets for other sports and events such as elections. It was established in 2021 as pandemic shutdowns reduced the capacity for gambling at racetracks and pubs and led to a spike in online betting.

While guilty pleas were entered on five counts in relation to the Punthub ads, seven other charges were withdrawn at a court appearance last week.

A sentencing hearing has been listed for February 26.

Ryman said Colossalbet did not make money, with profits soaked up by the point of consumption tax and race field fees amid fierce competition from the major sports betting agencies.

Approached for comment, a spokesperson for Liquor and Gaming NSW said: “As this matter is currently before the courts, we are unable to comment at this time.”

The federal government has devised reforms of the gambling advertising landscape that would prohibit the publication of betting companies promoting their businesses on social media and the internet, as well as capping the number of ads permitted on television and radio.

The proposed clampdown has faced opposition from corporate bookmakers, media organisations and the country’s two major football codes, the NRL and the AFL, and has been put on hold until after the federal election, which must take place on or before May 17.

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