PointsBet fined by NTRC in Australia

Regulation

On 12 August 2020, a Gambler lodged a gambling dispute with the Northern Territory Racing Commission in relation to his dealings with PointsBet Australia Pty Ltd (PointsBet).

During the course of the Commission’s investigation of that gambling dispute, PointsBet reached out to the Gambler and privately settled the dispute.

The Gambler advised the Commission that on 3 January 2020, he received unsolicited contact from a PointsBet employee (Mr M) via both telephone and email advising him that he had been made a member of the PointsBet VIP Program. The Gambler has submitted that as a result of becoming a PointsBet VIP member, he went on to lose $45,000 to $50,000 being funds that had come from his wife’s savings and a workplace injury compensation payment.

The Gambler has submitted that at no time did PointsBet undertake any inquiries to establish where the funds he was using to gamble with PointsBet originated from nor did it make any inquiries as to the affordability of his gambling activity even when there was a significant increase in the size and frequency of his betting activity which included placing a number of large consecutive wagers between 3 November 2019 and 9 November 2019. Instead, the Gambler has submitted that PointsBet saw an opportunity to exploit a vulnerable gambler and took the action of placing him in its VIP Program and offering him incentives to gamble such as providing additional bonus bets and tickets to a major Australian sporting event.

The Commission imposes a fine on PointsBet of 85 penalty units ($23,000) for its failure to comply with the 2019 Code. This is 50% of the maximum fine that can be imposed as the Commission regards PointsBet’s failure to be a significant one.

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