In a recent legal crackdown, wagering service provider BlueBet has been sanctioned for multiple transgressions of gambling promotion regulations in the state of Victoria. The company faced 43 charges of displaying gambling advertising unlawfully on or above public roads, a contravention of the Gambling Regulation Act 2003. These findings were a result of diligent investigation by the Victorian Gambling and Casino Control Commission (VGCCC) spurred by public complaint. During a period spanning two weeks in August and September of 2022, BlueBet’s promotional materials made prominent appearances on digital billboards along freeways, targeting a demographic of males from 15 to 54 years of age.
The scrutinized company’s defence, which pleaded ignorance of the law, was met with skepticism by Magistrate Greg Thomas, who pointed out the calculated placement of the billboards. Despite not recording a conviction, Thomas articulated that an accidental breach would imply a “high degree” of carelessness on the company’s part. After deliberation, BlueBet was convicted on all 43 charges related to the illegal display of its advertisements.
If not for BlueBet’s guilty plea, cooperation with the VGCCC, and updated protocols to prevent future infringements, the fine could have reached as high as $70,000, coupled with a conviction. However, the mitigation resulted in a reduction to a $50,000 fine, with the company also shouldering the legal costs as set by the commission.
Annette Kimmitt, the VGCCC CEO, stressed that gambling advertisements should not pervade public thoroughfares that are inevitably encountered in everyday life, particularly due to the vulnerability of children and other at-risk groups. The ruling serves as a stern directive to betting agencies that discount community safeguards.
In the context of Victoria’s more stringent stance aimed at safeguarding consumers from the dangers of gambling, this penalty is significant. Following recent amendments effective from April 1, additional measures have been put in place, which shift the presentation within online gambling accounts. Information on spending and losses is now required to present net loss figures excluding free and bonus bets, and a subtraction of all stakes from total win payouts in monthly statements. Moreover, simplicity and clarity in language are mandated, and gambling harm messages must be featured prominently.
The past few months have witnessed a surge in efforts by the VGCCC geared toward enforcing compliance among gaming operators. Notably, this month, MintBet incurred a fine amounting to AU$150,000 for repeated offences against responsible gambling directives. Additionally, in January, Tabcorp faced orders to transform most of its electronic betting terminals into cashless systems due to incidents involving underage gambling.
Yet for BlueBet, this legal hurdle coincides with corporate expansion news that freezes none of its broader ambitions. The company recently concluded a binding asset sale agreement to acquire the Betr wagering business. This move is anticipated to yield a larger, more competitive organization with an expanded market share in Australia. To achieve this, BlueBet is set to issue roughly 265.4 million new shares representing 56.9% of the company’s current shares to Betr shareholders.
The pending merger, subject to BlueBet shareholder endorsement and other closing conditions, has been hailed by the company who “unanimously” encouraged shareholders to approve the deal, touting its potential to generate significant value. If the prerequisites for the merger are satisfied, the company expects to finalize the acquisition by July 1st, marking a new chapter in the company’s market evolution amidst a backdrop of regulatory strictures and illustrious growth challenges.
