Australian Regulators Fine Sportsbook for Marketing Violations
Merlehan Bookmaking Ltd is facing a $75,000 fine after a number of illegal gambling ads aired on network television to millions of viewers last week. According to reports from government officials, the online sportsbook failed to approve their marketing material before release, leading to a series of charges against the company for an unappreciation for the rules. An initial fine has been set, and this number could increase once the investigation into their content has concluded.
This week, Australian authorities snapped back at Merlehan Bookmaking after a recent ad campaign violated several sections of Australia’s thorough marketing rules and regulations. Merlehan is yet to respond to the charges issued against them; they’re expected to make a public statement soon. ©pattyjansen/Pixabay
Following preliminary investigations by the Liquor and Gaming committee, Merlehan is facing a number of charges due to illicit advertising as well as misconduct relating to regulatory communications and transparency. Due to growing problem gambling concerns, the Australian government are keen to crack down on invasive marketing material with the potential to exploit vulnerable users. It’s nothing new for the gambling industry as several cases similar to Merlehan occurred last year, resulting in fines totaling up to $3.2million.
Merlehan is one of the biggest online betting sites in Australia. For over ten years, they’ve dominated the New South Wales market, building a highly successful brand name, and aligning themselves with the country’s culture. Despite their longevity, they aren’t strangers to controversy. In 2019, they received a cease-and-desist order from an independent data analyst firm after a spokesperson for the company criticized them for slow communication and messy transactions. Due to incidents like these, they’ve become infamous among the nation’s gamblers.
Merlehan is yet to respond to the charges issued against them, but as history shows, they’ve never been a firm that hides away from the media. Their social media accounts reflect the personality of the company. Humourful and sarcastic, they’ve adopted a laid-back persona for their business and are willing to poke fun at public figures in their advertising. Many news outlets have compared them to Paddy Power, an online sportsbook with a similarly humorous side to their marketing material.
According to Australian regulators, Merlehan’s advertising violated several sections of the Betting and Racing Act 1998. The main problem with their marketing content was the use of enticement offers to draw in new customers. Under current law, offers such as free bets and enhanced odds cannot be advertised due to the potential for triggering psychological effects. This could’ve been prevented if Merlehan had pre-approved their advertising content with the Liquor and Gaming committee, but the fine is justified as they failed to do so.
Merlehan push the limits once again
Since the conclusion of the court case, Merlehan has been playing catch up to recoup their losses both financial and reputationally. A representative for the company pleaded guilty to three separate charges relating to the marketing content. Each fine is worth $25,000, totaling an unsavory amount of $75,000. They have an option to appeal via an independent judiciary; however, it’s unlikely any action taken against the decision is unlikely to succeed. TopSport also received a $60,000 fine for illegal advertising campaigns earlier this month.
The maximum charge for this kind of offense is $150,000, Merlehan is lucky to escape a heftier fine considering the seriousness of the case. The Liquor and Gaming committee will continue to monitor the online sportsbooks activity’s and have placed Merlehan Bookmaking in a probation period. They’re required to submit all social media and television advertising content to regulators for approval before its release. While this process is tedious, officials view it as a necessary precaution to prevent a similar situation from occurring.
Despite numerous offenses, a couple of factors did swing in Merlehan’s favor. During the court hearing, the judge mentioned a previously clean record and ethical use of lottery profits to finance several charitable projects in Sydney. As they had no previous offenses, these charges can be considered a warning to Merlehan never to repeat their actions and defy the law. Despite these setbacks, the popular online sportsbooks still have a lot going for them; a committed user base will allow them to continue providing stellar services for the Australian public.
