Sportsbet lawsuit – Sportsbet Sued by Aussie Gamblers For ‘Illegal’ In-Play Betting

Sportsbet, Flutter Entertainment’s flagship Australian brand, is currently embroiled in a class-action lawsuit brought by gamblers who claim significant financial losses stemming from its ‘Fast Code’ service. Sportsbet, Flutter Entertainment’s flagship Australian brand, is currently embroiled in a class-action lawsuit brought by gamblers who claim significant financial losses stemming from its “Fast Code” service. The legal dispute highlights the high-stakes nature of modern wagering, particularly for those heavily reliant on in-play betting to capitalize on rapidly changing live odds.

What’s Behind the Lawsuit?

The lawsuit, filed December 24 in the Supreme Court of Victoria, argues that all “live bets” – otherwise known as in-play bets — placed using Fast Code between December 24, 2018 and December, 24, 2024 were illegal, and millions of dollars in losses should be returned to plaintiffs.

Betting on a sporting event after the event commences is prohibited in Australia. There is an exception to this if the bet is made wholly by telephone,” said Elizabeth O’Shea, a lawyer representing the plaintiffs, in a statement.

Why Fast Code Became Controversial

Australia’s Interactive Gambling Act (IGA), enacted 24 years ago, prohibits bets on events that have already begun unless they are placed via the telephone.

Online operators such as SportsBet attempted several technical workaround solutions which they believed would circumvent this issue.

The first was William Hill’s “Click to Call” product. This allowed bettors to quickly build an in-play wager online, which would generate an alphanumeric code. This could then be “dialed in” to an automated service to enable in-play betting. SportsBet’s Fast Code is essentially the same system.

What Went Wrong?

A 2016 amendment to the IGA attempted to close the loophole by asserting that the in-play prohibition extended to online gambling operators.

The effort to increase the friction between the gambler and the betting process was ultimately ignored by some sportsbooks, which continued to insist their products were legal under the IGA.

ACMA’s Verdict

In December 2023, the Australian Communications and Media Authority (ACMA) concluded after a yearlong investigation that the operators were in breach of the IGA.

The ACMA underlined that information about the bet selection, bet type, and bet amount, plus confirmation of the bet, must be provided by a customer wholly via a telephone call.

However, the ACMA decided not to take action against the operators, including Sportsbet, because they had “taken steps to ensure their use of Fast/Quick Codes complies with relevant interactive gambling rules.”

The codes would now only be generated prior to the commencement of a sporting event, according to the ACMA.

What Does This Mean for Sportsbet?

Nevertheless, the lawsuit argues that “Sportsbet represented to the plaintiff and group members that the Fast Code service was legal,” while “engaging in misleading or deceptive conduct contrary to the Australian Consumer Law.”

Key Facts About In-Play Betting Laws

1.
In Australia, betting on a sporting event after the event commences is prohibited.

2.
There is an exception to this if the bet is made wholly by telephone.

3.
The Interactive Gambling Act (IGA) prohibits bets on events that have already begun unless they are placed via the telephone.

Conclusion

The lawsuit against Sportsbet highlights the importance of adhering to Australia’s in-play betting laws and regulations. By understanding these rules, individuals can protect themselves from potential harm and ensure a fair gaming experience.

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