Online gambling giant Sportsbet facing class action over in-game bets

Betting giant Sportsbet is facing a class action and claims that punters have lost millions of dollars gambling on illegal in-game bets.

Betting giant Sportsbet is facing a class action following claims punters have lost millions of dollars on illegal in-game bets.

The online wagering company, owned by international company Flutter Entertainment, has disrupted the market, offering stiff competition to traditional gambling outlets such as Tabcorp.

Sportsbet is one of Australia’s top three wagering players, alongside Tabcorp and Entain’s Neds and Ladbrokes.

Maurice Blackburn launched the lawsuit in Victoria’s Supreme Court late last year, with the case focusing on in-play bets – also called live bets – made on sporting events using Sportsbet’s Fast Code service.

Maurice Blackburn principal Elizabeth O’Shea said betting on a sporting event after it has started is prohibited in Australia, but there is an exception if the bet is made wholly by telephone.

Sportsbet is facing a class action. Picture: NCA Newswire / Gaye Gerard

“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 otherwise than by a voice call,“ Ms O’Shea said.

“Sportsbet represented to the plaintiff and group members that the Fast Code service was legal, and in doing so we believe it engaged in misleading or deceptive conduct contrary to the Australian Consumer Law.”

The class action is seeking a refund for everyone who lost money on in-play bets using Sportsbet’s Fast Code service. Sportsbet was contacted for comment.

Anyone who lost money placing one or more in-play bets made after the start of a sporting event in the past six years can register to join the class action.

The lawsuit does not include bets on racing (horse, harness or greyhound) events.

In August, New York- and London-listed Flutter Entertainment described rugby league betting as its biggest Australian growth market.

“In Australia, the horse race wagering market remained in year-over-year decline, in line with our previously communicated expectations,” the company noted at the time, in a financial update. “We are, however, seeing encouraging growth in our customer base and player engagement on key sporting events such as the rugby league State of Origin games during Q2, where we doubled our new customer acquisition year over year.”

Flutter’s latest quarterly results, released in November, showed its Australian revenue grew 9 per cent on a constant currency basis, while adjusted earnings before interest, taxes, depreciation and amortisation jumped 12 per cent (constant currency). Its average monthly players also grew by6 per cent year on year.

Victoria’s wagering taxes weighed on earnings but were outweighed by a year-on-year benefit of 180 basis points in favourable sports results.

Sportsbet was fined $2.5m in 2022 by the Australian Communications and Media Authority for spamming customers who were trying to unsubscribe from their platform.

ACMA’s investigation found Sportsbet had sent more than 150,000 marketing text messages and emails to more than 37,000 consumers who had tried to unsubscribe.

ACMA chair Nerida O’Loughlin said at the time: “We received complaints from people stating they were experiencing gambling-related problems and were trying to manage the issue by unsubscribing from Sportsbet’s promotions.”

Originally published as Online gambling giant Sportsbet facing class action over in-game bets