An Australian law firm has introduced a lawsuit against Sportsbet after the sportsbook was found to have violated betting laws.
A class action lawsuit has been filed in Australia against online sportsbook Sportsbet, alleging that the company engaged in illegal live betting practices, costing bettors millions of dollars.
The case, lodged in Victoria’s Supreme Court by law firm Maurice Blackburn, centres on Sportsbet’s “Fast Code” service, which is claimed to have circumvented Australian gambling laws.
Under Australian law, live betting on sporting events is prohibited once the event has commenced, except when wagers are placed entirely via telephone. Flutter Entertainment-owned Sportsbet was previously found to have violated this law.
Maurice Blackburn alleges that Sportsbet’s “Fast Code” service violated this requirement by allowing bets to be placed in a manner that bypassed the voice-call stipulation. The law firm contends that this practice undermines regulations designed to mitigate gambling harm.
Maurice Blackburn asserts that Sportsbet’s actions allegedly flouted the law and contributed to significant financial losses for bettors. The suit specifically covers wagers placed between 24 December 2018 and 24 December 2024.
The lawsuit seeks refunds for Sportsbet users who placed live in-game bets using the service over the past six years. However, bets placed on racing events, including horse, harness, and greyhound races, are excluded from the class action.
Implications for Sportsbet
The legal action highlights ongoing concerns over the gambling industry’s compliance with regulations designed to prevent harm.
The focus on the “Fast Code” service underscores the challenges of enforcing laws in a rapidly evolving digital gambling landscape.
If successful, the class action could compel Sportsbet to issue refunds for millions of dollars in bets placed using the disputed service.
The case also raises questions about the effectiveness of existing regulations and the responsibility of gambling operators to adhere to legal and ethical standards.
Sportsbet has not publicly commented on the allegations in detail but is expected to mount a robust legal defence. The company has a significant presence in the Australian market, which is known for its stringent gambling laws.
Sportsbet accustomed to legal challenges
Sportsbet is no stranger to legal controversies. The company, one of Australia’s largest online sportsbooks, has had to deal with several lawsuits – either those it initiated or had to respond to – in recent years.
Last October, accused fraudster Benjamin Carter dropped a long-running civil lawsuit against Sportsbet.
Prosecutors claim Carter embezzled A$26m from his tax advisory business to support a gambling addiction, and alleged that Sportsbet had encouraged his excessive gambling through incentives and perks.
Court filings revealed he placed A$70m in bets with Sportsbet between 2021 and 2023, sometimes transferring hundreds of thousands of dollars in a single day. However, before dropping the suit, Carter claimed that Sportsbet was to blame for offering him inducements.
In another legal dispute, Sportsbet and its insurer, Allied World, initiated legal proceedings against accounting giant Deloitte last August.
The case, filed in the Supreme Court of New South Wales, accuses Deloitte of negligence during audits conducted for William Hill Australia, a company later acquired by BetEasy which then merged into Sportsbet.
The lawsuit alleges that Deloitte failed to identify nearly A$5m in underpayments to Racing Victoria during audits performed between 2015 and 2018.
Sportsbet claims it would not have paid A$313.7m to acquire William Hill if it had been aware of the underpayment of fees. The company argues that Deloitte, in its capacity as William Hill’s auditor, provided advice that was both misleading and deceptive.
The claim involved 390 current and former Deloitte partners and asserted that these oversights materially understated fees owed to Racing Victoria.