Sportsbet hit with AU$313K fine in Australia over 'systemic failures'

• Sportsbet hit with a fine in Australia over "systemic failures," the regulator purports
• The company failed to send activity statements to thousands of customers over 18 months
• The NT Racing and Wagering Commission insisted that its response was appropriate and proportionate

Sportsbet, Australia’s largest bookmaker, has been hit with an AU$313,140 fine by the NT Racing and Wagering Commission (NTRWC) over what the regulator described as "systemic failures." The company supposedly did not intervene in the case of thousands of customers.

Specifically, Sportsbet did not provide 6,131 customers with their "activity statements" for 18 months between 2022 and 2024, which is a prerequisite for operating a license in the country.

The regulator described the omission of statements as a "distinct and recurring failure" and called the penalty "proportionate."

Thousands of customers did not get their activity statements

"The ongoing nature of the contraventions demonstrates a systemic failure in the licensee’s governance and assurance framework," the regulator added, reflecting on the seriousness of the conduct.

The idea behind an activity statement is to allow sports bettors to analyze their behavior and determine whether they have been spending too much on the activity. Lack of such statements could blindside players as to how much they spend on gambling, the regulator argued.

For its part, Sportsbet has rebuffed claims that it had done so purposefully. The operator argued that technical snags had led to the platform failing to generate the statements in question - some 51,525 documents- and acknowledged the seriousness of the issue.

Sportsbet, however, insisted the NTRWC did not report the incident straight away - but only notified the regulator five months after the discovery was made, further complicating the issue.

The operator has also apologized for the mistake that left so many customers without access to a vital piece of information about their gambling behavior. The regulator’s boss, Alastair Shields, vowed to continue upholding the law and enforcing it in instances that required it.

Commission insists that its response is ‘appropriate’ and ‘proportionate’

"The commission will continue to take firm enforcement action to ensure compliance and promote a safer wagering environment," Shields said, adding that the awarded fine "underscored the seriousness of the non-compliance" as well as the regulator’s decisiveness in settling the matter.

About a year ago, Sportsbet agreed to comply with requests from the Australian Transaction Reports and Analysis Center (AUSTRAC), and meet requirements for managing money laundering and terrorism financing.

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