‘Free bet’ costing $200 not so smart for Bet365 after fines of $2.75m
Gaming company Bet365 has been handed $2.75m in fines after being found guilty of luring new customers with non-existent “free bets” worth $200.
Bet 365 conduct misleading and extensive court finds
The gaming giant, part of UK company Hillside (Shared Services) Ltd, which has been a huge advertiser in the Australian market with its ads headed by Samuel L Jackson, earned Australian revenue of more than $29m in the year the promotion appeared, between March 2013 and January 2014.
The Federal Court handed down the guilty ruling in December and has now fined the company for the misleading campaign in which it wasn’t made clear to punters that they would have to deposit and gamble their own $200 before becoming eligible for the “free” $200 bet.
The court described the misleading conduct as serious and extensive in its duration and that it had affected a large number of consumers.
Australian Competition and Consumer Commission chairman Rod Sims said that there was no way for consumers to see in the campaign that they would have to put their own money at risk.
“It is disappointing that such a large and prominent business would engage in misleading marketing behaviour,” Sims said.
“The ‘free bets’ offer by Bet365 was aimed at enticing customers, particularly new customers who had not previously used such types of services and who were drawn into what the judge described as a ‘web of 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 that ensures consumers are fully informed before they are ‘enticed into a marketing web’.
