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A class action lawsuit has been filed against betting giant Sportsbet. The lawsuit was launched on behalf of gamblers and aims to recover millions of dollars allegedly lost through illegal live bets facilitated by the online sportsbook.
The case has been lodged at the Supreme Court in Victoria by law firm Maurice Blackburn and centers on Sportsbet’s ‘Fast Code’ service, which prosecutors believe to be in violation of Australia’s gambling laws.
According to the country’s laws, betting on a sporting event that has already commenced is illegal unless the wager was placed wholly via a telephone. The law firm is contending that the service undermines regulations which was put in place to protect consumers and mitigate gambling addiction. Speaking on the suit, the Maurice Blackburn principal Elizabeth O’Shea, said,
“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.
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 lawsuit covers live bets placed between December 24, 2018, and December 24, 2024, excluding wagers on horse, harness, and greyhound races. It seeks refunds for Sportsbet players who have used this service over the past six years.
What Does This Mean for Sportsbet?
The implications of this lawsuit could be significant for Sportsbet in various ways. First off, there are financial repercussions, as a successful lawsuit could see Sportsbet having to pay millions of dollars to hundreds of users. There could also be potential penalties from the country’s gambling regulator.
Australia is also known for its robust gambling regulatory framework, so this case raises serious concerns about the effectiveness of the current regulations and the responsibility of online gambling operators to adhere to ethical and legal standards.
The case also highlights the importance of responsible gambling practices, another area the country has been very passionate about. The Australian Communications and Media Authority notably introduced BetStop, a federal self-exclusion registry, in August 2023, and has seen over 30,000 users registered since then, reflecting the growing awareness and need for tools that help individuals manage their gambling behaviors.
A Growing Trend for Sportsbet
The past year has seen Sportsbet embroiled in several legal battles. While most of them have been thrown against the betting powerhouse, they have also initiated some themselves.
Notably, in August 2024, the company sued accounting Deloitte. This action was taken in the Supreme Court of New South Wales, where Sportsbet and its insurer, Allied World, accused Deloitte of negligence during audits conducted for William Hill Australia, a company acquired by BetEasy and subsequently merged into Sportsbet.
The lawsuit centers around allegations that Deloitte failed to identify nearly A$5 million in underpayments to Racing Victoria during audits performed between 2015 and 2018. Sportsbet contends that had it been aware of these underpayments, it would not have agreed to pay A$313.7 for the acquisition of William Hill. Over 350 current and former partners from Deloitte are involved in this suit.
Later in October, accused fraudster Benjamin Carter dropped his lengthy legal battle against Sportsbet. During the proceedings, it was revealed that Carter had placed AU$70 million in bets between 2021 and 2023, with prosecutors alleging that AU$26 million of that total was embezzled from his tax advisory business.
Carter had accused Sportsbet of “unconscionable conduct,” claiming that the platform failed to limit his exposure to marketing or take action to block his account despite his high-stakes gambling.
While that particular suit has been dropped, Sportsbet now braces itself for another lengthy legal battle against Maurice Blackburn, one that could significantly impact the company.
Source: Next.io
