Aussie Gamblers Launch Lawsuit Against Sportsbet for Accusations of Unlawful Betting Operations
In a twist in Australia's betting landscape, a class-action lawsuit against Sportsbet has been brewing since its filing in the Supreme Court of Victoria on December 24, 2024. The lawsuits allege Sportsbet's "Fast Code" feature, enabling in-play betting, violates Australia's Interactive Gambling Act (IGA), and seek the return of millions in losses.
The Nitty-Gritty of the Lawsuit
In-play betting, allowing wagers during sporting events, is the focus of this dispute. Whilst rapid odds changes require swift decisions, the IGA's original intent was to curb impulse betting, potentially reducing gambling harm.
The lawsuit claims that all live bets placed using the Fast Code service between December 24, 2018, and December 24, 2024, were unlawful because they contravene the IGA, which prohibits betting on events already started unless done via telephone.
Implications for Sportsbet and its Reputation
From a financial standpoint, Sportsbet faces potential financial repercussions, like repaying substantial losses, and a tarnished reputation if the allegations are proven true. The lawsuit could lead to stricter regulations and increased scrutiny on an industry already under the microscope.
A Closer Look at the Fast Code Feature
The Fast Codes, used for in-play betting, have been in the spotlight recently. An investigation by the Australian Communications and Media Authority (ACMA) revealed that these codes are generated by a third-party, PlayUp, before the sporting event commences, independent of customer bet selections, and generic in nature [1].
Industry-Wide Repercussions
If found guilty, Sportsbet might prompt industry-wide changes in online gambling, with the possibility of tighter regulations, greater transparency requirements, and heightened consumer protection against misleading betting features.
Legal experts and industry analysts are monitoring the case closely, cognizant of its potential to influence not only legal outcomes but also future market practices. The coming weeks will see crucial hearings and the unveiling of detailed evidence, attracting significant attention nationally and globally.
[1] As of June 19, 2025, further investigations by the ACMA.
The Fast Codes, used for in-play betting, are at the heart of the controversy, as they are argued to violate the IGA due to being generated before the sporting event commences, potentially leading to unlawful betting during sports events. The lawsuit could have far-reaching implications for Sportsbet, possibly requiring the repayment of millions in losses and resulting in stricter regulations and increased scrutiny across the online gambling industry.
