A class action lawsuit has been filed against sportsbook Sportsbet in Australia, alleging that the company engaged in illegal live betting that cost punters millions of dollars.
The case, brought to the Victorian Supreme Court by law firm Maurice Blackburn, centres on Sportsbet’s ‘Fast Code’ service, which it claims circumvented Australian gambling laws.
Under Australian law, live betting on sporting events is prohibited after the event has started, unless the bets are placed entirely over the phone. Sportsbet, which is owned by Flutter Entertainment, has previously breached the law.
Maurice Blackburn alleges that Sportsbet’s ‘Fast Code’ service breached the requirement by allowing bets to be placed over the phone. The firm argues that the practice undermines regulations designed to mitigate gambling harm.
Sportsbet’s actions are alleged to have violated the law and caused significant financial losses to players, according to the lawsuit. The lawsuit covers bets placed between December 24, 2018 and December 24, 2024.
The lawsuit seeks refunds for Sportsbet users who have placed live bets using the service over the past six years. However, bets placed on horse racing, including horse racing, harness racing and greyhound racing, are excluded from the class action.
The lawsuit highlights concerns about the gambling industry’s compliance with rules designed to prevent harm. The focus on the “Fast Code” service highlights the challenges of enforcing laws in a rapidly changing digital gambling landscape.
If convicted, Sportsbet could be forced to return millions of dollars in bets placed using the controversial service.
Sportsbet has not publicly commented on the allegations, but is expected to mount a legal defense. The company has a significant presence in the Australian market, which is known for its strict gambling laws.
The case against Sportsbet raises questions about the effectiveness of existing regulations and the responsibility of gambling operators to uphold legal and ethical standards.
This is not Sportsbet’s first legal battle. As one of Australia’s largest bookmakers, the company has faced several lawsuits in recent years, in which it has been both a plaintiff and a defendant.
In October last year, accused fraudster Benjamin Carter withdrew a civil case against Sportsbet.
Prosecutors alleged that Carter embezzled A$26 million from his tax advisory business to bet, and that Sportsbet encouraged his excessive gambling with incentives and benefits.
Documents show he placed A$70 million in bets with Sportsbet between 2021 and 2023, sometimes transferring hundreds of thousands of dollars in a single day. However, before dropping the claim, Carter claimed that Sportsbet was at fault for offering him incentives.
In a separate legal dispute from August 2024, Sportsbet and its insurer Allied World commenced proceedings against Deloitte. The company is accused of negligence during an audit carried out for William Hill Australia, which was later acquired by BetEasy, which then merged with Sportsbet.
The claim alleges that Deloitte failed to identify almost AUD$5 million in underpayments by Racing Victoria during an audit carried out between 2015 and 2018.
Sportsbet claims it would not have paid AUD$313.7 million to acquire William Hill if it had known about the underpayments. The company claims that Deloitte, as William Hill’s auditor, provided advice that was misleading and deceptive.
The lawsuit named 390 current and former Deloitte partners and alleged that these omissions significantly understated the fees owed to Racing Victoria.
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