ACCC accuses Bet365 of misleading advertising

By Esther Han
Updated August 14 2014 - 5:23pm, first published 4:32pm
The ACCC is cracking down on betting advertising.  Photo: Erin Jonasson
The ACCC is cracking down on betting advertising. Photo: Erin Jonasson

Online gambling giant Bet365 has been accused of misleading punters with a promotion that required them to gamble $1200 before they could recover $200 in "free bets".

The Australian Competition and Consumer Commission has launched legal action against three Bet365 companies in the Federal Court this week, accusing them of misleading customers into thinking they were entitled to up $200 in bets without limitations or restrictions.

Court documents show that between March 2013 and February 2014, Bet365's opening webpage displayed the headline offer: "$200 free bets for new customers", and from February this year: "Up to $200 deposit bonus for new customers".

The ACCC has labelled these as "misleading representations" that breached consumer law because they were subject to conditions that were not prominently displayed.

The conditions included the fact consumers had to first gamble up to $200 to receive a "free bet" or "deposit bonus" of the same amount; had to be eligible by first gambling three times the value of their deposit and bonus within 90 days before withdrawing any winnings; and had to bet on higher risk transactions.

"As a result, a consumer who made an initial deposit of $200 and received $200 in bets was required to then gamble $1200 before being able to withdraw any money," an ACCC statement said.

The ACCC is suing Hillside (Australia) New Media Pty Ltd, Hillside (New Media) Limited and Bet365 Group Limited - three local companies linked with the United Kingdom's biggest online gambling company, Bet365 Group.

The parent company claims to have more than 14 million customers in 200 countries; the local operation is licensed and regulated by the Northern Territory Government.

Online trading was an enforcement priority, said ACCC chairman Rod Sims. It is seeking declarations, injunctions, pecuniary penalties, corrective advertising, a compliance program and costs against Bet365 for breaching Australian Consumer Law.

“The online betting industry is a growing business sector. The Australian Consumer Law applies to this sector in the same way that it applies to other industries and sectors,” he said.

“The Consumer Law also requires that any conditions, limitations or restrictions should be made clear to the consumer before the purchase rather than after a consumer has been unfairly enticed into a transaction.”

Bet365, which entered the Australian market early last year, has since changed the advertising content on its website. It has been approached for comment.

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