Gamblers in Australia have launched a class action lawsuit against Sportsbet to recover millions of dollars they claim to have lost through illegal live betting.
Sportsbet is owned by Flutter Entertainment, the global gaming operator behind FanDuel in the U.S.
The case, which is being conducted in the Supreme Court of Victoria by law firm Maurice Blackburn, focuses on in-play, or live bets made on sporting events using Sportsbet’s “Fast Code” services. An in-play bet or a live bet is a wager made after the sporting event has started. This practice is prohibited in Australia, except when the bet is made wholly by phone.
To place a bet by phone, the customer must relay all information, such as bet selection, type, amount, and confirmation through the voice-call only.
The lawsuit alleges that Sportsbet’s “Fast Code” service is illegal, as it is not made wholly by phone.
Maurice Blackburn’s service description states, “A code (e.g. ‘XPE’) is shown to the customer once they make a bet selection on the app or website. The customer then calls Sportsbet and the code is recited to a Sportsbet staff member as part of placing the bet.”
The law firm contends this ignores the voice-call exception to Australian gambling laws.
By providing what Maurice Blackburn describes as illegal “Fast Code” services, the lawsuit argues that Sportsbet has undermined Australian regulations designed to mitigate harm. Accordingly, Sportsbet’s contract with its customers was illegal, and the customers are entitled to a refund of their losses.
The lawsuit covers in-play or live bets between Dec. 24, 2018, and Dec. 24, 2024. During this period, customers allegedly suffered significant financial losses, which the lawsuit seeks to refund. This does not include bets made on horse races, harness races, or greyhound races.
Sportsbet has yet to make a public comment regarding the lawsuit.
Sportsbet’s Previous Legal Challenges
Sportsbet has encountered previous trouble with this particular law. Between September 2022 and September 2023, an Australian Communications and Media Authority (ACMA) investigation discovered that Sportsbet was one of four operators violating the Interactive Gambling Act's in-play betting regulations.
The investigation found that Sportsbet used Fast Codes during in-play or live betting. At the time, the customer had to use Sportsbet’s app or website to create an in-play bet that included event details, bet selection, and type. This generated a code, which the customer quoted to Sportsbet on the phone, including the bet amount and a confirmation.
In response to ACMA’s ruling on illegal trade, Sportsbet altered its system so the site would create generic Fast Codes before the event started. At the time, ACMA agreed not to take further action.
Changes to the Australian Gambling Regulations
The lawsuit comes amid uncertainty regarding Australian gambling regulations. More than 18 months ago, Prime Minister Anthony Albanese promised stricter regulations on certain aspects of the Australian gambling market. These regulations have been continuously delayed, and the government has decided to remove research and development tax incentives for gambling companies.
One piece of gambling regulation that has come into place is the credit card ban for online gambling accounts. The Interactive Gambling Amendment Bill 2023 also banned players from using cryptocurrencies to fund online gambling.
