NSW regulator warns betting operators over inducements and compliance breaches

Liquor & Gaming NSW has warned licensed betting service providers that failures to comply with statutory notices and gambling advertising restrictions could lead to prosecution.

Key takeaways:

• Liquor & Gaming NSW warned licensed betting providers that compliance breaches could lead to prosecution.
• Section 33H of the Betting and Racing Act 1998 prohibits gambling inducements in advertisements accessible to NSW residents.
• A major betting provider is under consideration for enforcement action over repeated bonus credit advertising.
• Failure to comply with statutory notices can attract a maximum penalty of 100 penalty units.
• Corporate penalties for gambling inducement breaches can reach 1,000 penalty units.

Australia.- Liquor & Gaming NSW (L&GNSW) has reminded licensed Betting Service Providers (BSPs) that non-compliance with statutory notices and restrictions on gambling inducements could result in enforcement action. L&GNSW said it is considering enforcement action, including potential prosecution, against a large betting service provider that has repeatedly advertised inducements such as bonus credits.

Under Section 33H of the Betting and Racing Act 1998, gambling advertisements accessible to people in NSW must not include inducements to participate in gambling, increase gambling frequency or open a betting account. Prohibited offers include bonus credits, vouchers, rewards programmes and gambling products or features providing additional benefits. The restrictions apply even when advertisements carry disclaimers stating that offers are unavailable in NSW.

The regulator also raised concerns about wagering providers’ responses to statutory notices issued under Section 21 of the Gaming and Liquor Administration Act 2007. These notices may require operators to provide information or records within a specified timeframe.

The warning comes amid concerns over advertising practices and responses to regulatory information requests as the peak spring racing period begins. L&GNSW said it expects betting providers to have appropriate systems and controls to identify notices, escalate them internally and submit complete and accurate responses by the required deadline. Partial, late or otherwise deficient responses may constitute non-compliance.

The regulator warned that failing to comply with a statutory notice without lawful excuse, or providing information known to be false or misleading, constitutes an offence. The maximum penalty for failing to comply is 100 penalty units. For gambling inducement breaches, the maximum penalties are 100 penalty units for individuals and 1,000 penalty units for corporations.