Bet365 sued in Australia over free bet offer

Bet365 is facing legal action in Australia after the country’s competition regulator accused it of misleading customers with a free bet offer which meant they had to gamble AU$1,200 before they could withdraw.

The Australian Competition and Consumer Commission (ACCC) claimed the operator did not display the terms and conditions attached to historical ‘free bet’ and ‘deposit bonus’ offers clearly enough and is taking legal action in the Federal Court this week.

Specifically, the watchdog said bet365 misled customers over the requirement to turnover any winnings associated with the offer three times within 90 days before being able to withdraw, and that they had to bet on “higher risk transactions”.

The ACCC noted that bet365 had taken the offers down from its Australia-facing site, however it is now taking legal action against the firm for what it described as “declarations, injunctions, pecuniary penalties, corrective advertising, a compliance programme and costs”.

“The online betting industry is a growing business sector. The Australian Consumer Law applies to this sector in the same way that it applies to other industries and sectors,” ACCC Chairman Rod Sims said.

“The Consumer Law also requires that any conditions, limitations or restrictions should be made clear to the consumer before the purchase rather after a consumer has been unfairly enticed into a transaction,” he added.

Bet365 declined to comment on the ACCC’s action.

Earlier this month bet365’s Australian business posted a AU$40.8m (£22.5m) loss for its 2013 financial year as rising costs cancelled out a near threefold increase in revenues.

The company said its Australian customer base had grown by 83% during the 12-month period ended 31 March to 73,000 and that revenues had increased 278% to $29.1m (£16m).