TopSport Fined By Australian Regulators for Illegal Ad Campaign
The Australian gambling authorities have remanded TopSport for breaking advertising guidelines, in consequence, they’ve issued a $60,000 fine for their actions. After a lengthy court hearing, prosecutors deemed TopSport’s marketing material ‘unlawful’. As a result, the Australian sportsbook will have to submit all future marketing material to a provision of the national gambling regulation board; once verified, it could then be released for public viewing. TopSport is now under the watchful eye of authorities, and their brand reputation has dropped, with active player numbers estimated to fall by the end of the year.
Sydney-based TopSport received a $60,000 fine from official regulators due to a spree of illegal marketing material. Financially the company remains intact, but the damage to their brand will be significant, and they must face a wave of criticism from the public and media outlets. ©pattyjansen/Pixabay
Court cases are often long and drawn out, and this was no exception; TopSport representatives and teams of lawyers assembled in the Sydney courthouse to discuss the appropriate action moving forward. The material in question broke several industry-standard guidelines; under the Betting and Racing Act of 1999, businesses must refrain from certain advertising techniques. A thorough investigation carried out by the Liquor and Gaming Board led to the initial enquiry into TopSport’s marketing material, and branding methods after several officials complained to board members about the situation.
As stated by the judge in last week’s court hearing, TopSport conducted themselves in an unfit manner to protect their customers and any potential customers. Betting advertising is a highly cautious subject; many countries have banned the use of marketing within the gambling industry; often, highly provocative, and flashy branding in the casino industry usually involves a strong visual experience. There are more cases of underage and problem gambling in 2021 than there was in 2000-2010. Internet advertising heavily contributes to the rapid circulation of branding material.
For each offence committed, a $20,000 fine is the order; as there were three separate accounts of illegal advertising, the fine totals to $60,000, and this doesn’t include legal costs. TopSport representatives later addressed the media consortium awaiting their arrival, while they apologized for their actions, they once again pledged to keep providing their excellent online service for the Australian user base. Following the recent controversy, TopSport is developing a new reward scheme for users who continued to access their sites throughout the last year.
The key problem with TopSports marketing was the promise of a top-up feature. Top up is another form of enhanced odds, and while this method isn’t illegal, aggressive advertising relating to enhanced odds directly violates the current legal system. The third offence relates to a weekly competition on TopSport’s website, and rewards are given to players who have spent the most on the platform over a certain time period. Rightfully, the courts labelled this as an aggressive means of encouraging additional spending from their user base.
TopSport Get off Lightly
$60,000 is by no means a small fine but considering the maximum amount is $250,000, TopSports arguably got off lightly. They make millions in yearly revenue, and advertising contracts and official sponsors also provide an additional source of income for the Sydney-based business. They also own five land-based casinos in Sydney and several others across New South Wales. TopSport has a positive track record up to this point. Years of ethical business handling perhaps granted them some leeway in the Australian courts.
Since last year’s global lockdown, Australia’s gambling industry has undergone some major policy changes. There’s been an undeniable shift in ethical responsibility, with regulators enforcing stricter CSR measures to ensure firms maintain Australia’s ‘good and green’ initiative. They are also one of the first countries in the world to ban the use of credit cards on betting sites, with the view that excessive spending is often via a credit card, leaving the individual with a mountain of debt. Several small initiatives like this are keeping Australia’s gambling industry clean.
Casinos worldwide took a major financial hit from the pandemic, and Australia’s were no different. The national lockdown meant a semi-permanent closure of all land-based establishments. Major cities such as Sydney and Melbourne had higher enforcement rates, meaning all non-essential businesses had to shut down for the time being. Despite the setback, casinos are looking to bounce back after a difficult year. Having reopened a month ago, gambling halls across the country have enjoyed a record number of visitors in only 30 days.
