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ACMA fines Entain for in-play betting violations as strict Aussie laws aim to protect gamblers & PointsBet explores North American business sale! (Image courtesy of Nothing Ahead on Pexels)

Downunder the Aussie gambling gossip news wires have come to life again, and we are on the sport to bring a combination of the latest developments.

Once again, the Australian Communications and Media Authority (ACMA) is dishing out fines, but they are more than justified. Meanwhile, PointsBet could end up selling its North American business with a focus to concentrate on its domestic Aussie betting services.

Currently, sports betting is the only form of gambling permitted online. Although there are overseas online casinos, which is exactly why we can provide players with Aussie live casino bonus offers. And many of these casinos also offer sports betting with in-play betting.

However, the domestically regulated Aussie gambling market frowns upon in-play betting hence Entain, listed on the London Stock Exchange, recently found itself in hot water with the ACMA after a mix-up with event starting time updates on its system. That mistake cost the UK firm AU$ 13,320. A costly mistake for making an incorrect data input.

Entain has seen worse: In comparison to previous fines by the UKGC, which amounted to £ 17m (AU$ 32.1m), the amount wasn’t enough for the firm’s share prices to fluctuate and certainly won’t affect its revenue too much when it comes to the Q2 financial report.

Entain Faces Penalty for Betting Violations – Strict Australian Laws on In-Play Betting

The (ACMA) recently fined Entain a total of AU$ 13,320 for infringing on national regulations regarding online in-play betting.

Entain brand Neds accepted in-Play bets for a golf event in Thailand last year. Also, the well-known UK high street bookie, which is also a large online sports betting platform in Australia Ladbrokes also found itself implicated in the violation. Both brands operate under Entain.

On the last day of the LIV Gold event, between the two brands, there were seventy-eight bets taken, which is considered in-play betting – something the ACMA strictly prohibits.

The maximum penalty for this type of breach under the Interactive Gambling Act 2001 is the amount ACMA imposed in the infringement notice. Entain acknowledged the violations after investigations showed that the wrong times for the event were put onto its system. This led to fifty-nine in-play betting violations.

Three hours after the day’s play began, Entain discovered there was an issue when a customer brought it to the firm’s attention. The company immediately voided all in-play bets and has since taken action to ensure its compliance policies prevent similar mistakes in the future. In other words, I would say there is a system that means someone double-checks the time.

ACMA chair Nerida O’Loughlin expressed her disappointment with Entain’s lack of internal procedures to prevent or detect the error. She stressed that in-play betting platforms/facilities pose a heightened risk for individuals vulnerable to gambling harm due to the speed of the results from these bets and the fact that players tend to place bets on in-play options more frequently, compared to pre-market bets.

Best Live Casino with Sport Betting Down Under

Live Casino & Sports (Image – Karen Laårk Boshoff)

PointsBet in North American Business Sale Negotiations

Australian gaming operator PointsBet has verified that they are presently in discussions with several parties regarding the sale of its North American business.

The company has also terminated talks about selling its Australian business to a News Corp-backed gaming venture affiliated with the Betr brand. Nonetheless, PointsBet continues to engage in discussions with other third parties interested in acquiring the business.

PointsBet reported a gross gaming revenue of AU$106.6m for the three months ending 31 March, a 39% increase from the previous year. While the Australian arm experienced a slight decline in revenue, North American operations witnessed significant growth. The Canadian business also saw rapid growth. However, the company expects an EBITDA loss of between $77.0m and $82.0m for H2 FY3 and a 30% reduction in cash outflow compared to H1 FY23.

In an effort to cut costs and drive the business towards profitability, PointsBet conducted a cost and efficiency review of its North American operational workforce. This resulted in a 12% reduction in headcount and annualized cost savings of approximately $6m. During the quarter, the company also managed to reduce its cost of sales by 10.5%.

Although PointsBet succeeded in cutting costs in some areas, they experienced modest increases in other spending streams, such as sales and marketing, staff, and administration costs.

Despite these increases, overall costs fell across the board. As of 31 March 2023, the company had $251.7m in cash on hand.

Summary of Australian Firm’s PointsBet Sale

PointBet Platform Sale (Image Pixabay)
  • PointsBet Confirms Sale Talks for North American Operations
  • Financial Performance: Growth in Revenue and EBITDA Losses
  • Cost-Cutting Initiatives and Efficiency Enhancements
  • Expenses Rise in Other Sectors:

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