Sportsbet stops novelty bets amid regulatory concerns

Neha Soni October 17, 2024

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Sportsbet stops novelty bets amid regulatory concerns

Australia’s largest online betting platform Sportsbet has stopped offering novelty betting options. This comes as the betting company faces a government investigation in South Australia and restrictions on where and when it can advertise.

Novelty betting involves predicting the outcome of any event taking place across the globe. Previously, Sportsbet allowed users to bet on events like the Grammys or wager on reality shows like Australian Survivor. The decision comes as Australia sees growing regulatory scrutiny and concerns regarding the effect such offerings could have on high-risk bettors.

Sportsbet is estimated to have a 45 percent share of the Australian online gambling market. It has shut down all novelty markets for at least three weeks, according to The Guardian. With social media users observing no novelties since the start of August.

The most recent blog post in the novelty section by the company dates back to March this year, titled ‘Who will be the next James Bond predictions.’

The company’s spokesperson said, “Sportsbet is not currently offering any novelty markets at the discretion of our trading teams. These markets may become available soon.” They declined to explain the decision. “Sportsbet determines the markets it will offer at any given time based on a range of factors.”

Guidelines

Sportsbet is licenced by the government in the Northern Territory, which has guidelines for how sports betting companies run novelty markets. One of the guidelines is where contingencies are not covered by an official regulatory body, they must be settled within a year of being first offered.

The NT Department of Industry has said novelty markets by Sportsbet have not breached its guidelines. However, a spokesperson has directed enquiries to the South Australian government.

“Sportsbet has not breached any NT-related novelty rules,” they said in an interview. “Recent action against Sportsbet has been taken by the South Australian liquor and gambling commissioner (through SA consumer and business services).”

The South Australian attorney general’s department has said that it is investigating the company but did not elaborate on the substance of its inquiries. A spokesperson said, “Matters involving this business are currently under consideration and we are unable to comment at this stage.”

In Australia, sports betting companies are pushing back against advertising reforms being considered by the federal government.

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