Sportsbet Faces Class Action Lawsuit Over Alleged Illegal Betting Practices

Sportsbet, a top betting company in Australia under Flutter Entertainment’s ownership, is now facing a class action lawsuit. 

Maurice Blackburn Sues Sportsbet, Alleging Misleading In-Play Betting Service

The legal challenge claims the company engaged in unlawful in-play betting practices. Maurice Blackburn, a law firm, filed the suit in the Supreme Court of Victoria. It aims to get back millions of dollars that customers lost while using Sportsbet’s “Fast Code” service. This service allowed live betting on sports events from December 24, 2018, to December 24, 2024.

Australian law bans betting on events that have already begun unless people place the wager over the phone. Maurice Blackburn claims that the “Fast Code” service broke this rule by making customers create a code online and then give it to Sportsbet by phone.

The law firm says this method did not follow the regulations that bets should be made through talking on the phone. The lawyers argue that Sportsbet was not truthful about whether the service was legal and did things that were misleading or deceptive, which goes against Australian consumer law.

The lawsuit comes at a time when people are taking a closer look at gambling in Australia pushing the government to put in place tougher rules. While the government stopped credit card and cryptocurrency payments for online betting, some say the current laws are not enforced well enough. This case shows how some betting companies might have found ways around rules on live betting. 

Lawsuit Claims Sportsbet’s Practices Cost Gamblers Millions Over Six Years

Sportsbet came under fire for its “Fast Code” service during a probe by the Australian Communications and Media Authority (ACMA) in 2023. The ACMA discovered that Sportsbet and other companies had broken federal laws by enabling in-play betting through their platforms. Although the companies tweaked their services to comply with regulations, Maurice Blackburn claims that Sportsbet’s earlier use of the service led to major money losses for its customers.

The main plaintiff in the ongoing lawsuit lost over $2,300 while using the “Fast Code” service from 2019 to 2021. The legal case aims to include thousands of gamblers who experienced losses during the six years under scrutiny.

The lawsuit does not cover bets on horse, harness, or greyhound racing, as these fall under different rules.

A successful lawsuit could force Sportsbet to pay back millions to affected customers, shaking up the online betting world. Flutter Entertainment, Sportsbet’s owner, has not addressed the claims yet. However, experts think they will put up a tough fight, given the possible financial and reputation issues at stake for the company.