The global sports betting operator is being probed in the land down under for a second time this year for its recent infraction.
Bet365 has landed in hot water with Australian regulators (again).
As of June 11, Australia banned the use of credit cards and cryptocurrencies to fund online gambling accounts. Not even two days later, it was found that bet365 was still allowing gamblers to deposit funds with online vouchers paid for with credit.
According to The Australian Financial Review (AFR), Australia’s Communications Minister Michelle Rowland is seeking “urgent advice” regarding the operator’s possible breaches of the newly enacted rules banning credit card deposits.
The Interactive Gambling Amendment Bill 2023 was originally passed in December. In addition to a credit card deposit ban, the legislation included the launch of a self-exclusion register and mandated pre-verification IDs for online gambling accounts. Australia had previously banned the use of credit cards at land-based casinos even before that bill was passed.
Yet, as late as the afternoon of June 12, bet365 still allowed users to make deposits using Flexepin and paysafecards – digital vouchers that can be purchased with a credit card online.
On Wednesday night, bet365 said it had suspended the “long-standing” deposit methods while the matter is reviewed.
Toeing the line
This isn’t an open-and-shut case though. The Australian Communications and Media Authority (ACMA) is now looking into whether the deposit method in question actually violates the new law, or if this is a sign of legal loopholes that need to be fixed.
An ACMA spokesperson told AFR that the body was seeking further information from bet365 about the measures the operator was taking to comply with the rules.
Gambling reform advocate Reverend Tim Costello thinks the new laws aren’t tight enough, leaving the possibility of working around them:
“The government can’t crow about taking this seriously when you can still effectively get around the new credit betting bans,” Mr. Costello said.
bet365 accepted deposits up to $500 with Flexepin and $200 with paysafecards. If the global sports betting giant is found to have breached the law with these methods, it could face fines or even additional regulations to ban the use of these deposit methods.
Piling on
bet365 hasn’t exactly enjoyed smooth sailing in the land down under this year.
In March, Australia’s financial crime watchdog opened an investigation into the operator to audit potential money laundering breaches. The Australian Transaction Reports and Analysis Centre (AUSTRAC) initially ordered an audit of bet365 in November 2022 which led to the investigation.
The U.K.-based sportsbook operator was also fined $1.1 million “for failing to prevent potential money laundering and protect vulnerable customers,” according to AFR.
A response regarding the possible violation of the credit card deposits ban is due in the second half of 2024.