Bet365 Fined $2.75m for Misleading Free Bets

UK online bookmaker Bet365 has been fined $2.75 million for misleading Australian players with their free bet offers.

Free bets are common in the online sports betting world, but an Australian court deemed that Bet365 misled Australian bettors with their “$200 free bets for new customers” promotion that ran from March 2013 – January 2014.

Specifically, the court ruled that Bet365 didn’t properly display the , which called on players to deposit money and gamble at least $200 before receiving their $200 free bet.

Rod Sims, who heads the Australian Competition and Consumer Commission (ACCC) group that sued Bet365, believes that the bookmaker’s free bet was nothing more than deception.

“These penalties should serve as a warning to all businesses that is it not acceptable to promote ‘free’ offers as a headline offer without ensuring that any restrictions or limitations are disclosed in a prominent way,” said Sims.

Bet365, which earned £1.5 billion in revenue last year, made millions off Australian customers thanks to their free bet promotion. The $2.75 million fine only reflects Australian data, rather than Bet365’s global network of players.

“I think it’s an appropriate penalty … it will send the message,” Sims said of the fine.

Justice Beach thought the free bet came with unfair conditions, including that players wager 3 times the value of their deposit and bonus within 90 days before withdrawing bonus winnings. And bets had to be placed at higher limits to be eligible for the bonus.

Sims said that while Bet365 isn’t the only offender of unfair online bonuses, they were the worst of the bunch.

“The Bet365 was the worst one,” he said. “We’re now writing to everybody saying: ‘Look, it’s clear you can’t do this.’ This is particularly relevant in an emerging industry like the online gambling market, where online and print ments target consumers who may not previously have used online gambling services.”

Justice Breach noted that Bet365’s offer was reckless, especially in a country like Australia, which has the world’s highest per capita gambling population.

In addition to leveling the $2.75 million fine, Breach also ordered Bet365 to email affected customers with a corrective notice.

According to the Sidney Morning Herald, Bet365 claims that the free bet issues was linked to a softare error.

“Bet365 regrets that, as a result of this error, it may not have adequately brought to the attention of customers and conditions associated with the promotion,” said a Bet365 spokesman. “Bet365 has introduced stricter compliance processes and controls, as well as improved staff training to prevent a similar issue arising again.”