Colossalbet fined $60,000 in NSW ruling over offensive gambling ads

In a first for New South Wales, online betting operator Ryman Racing Pty Ltd — trading as Colossalbet — has been prosecuted and convicted for publishing gambling ads that breached the state’s standards of decency, dignity, and good taste.

A significant AU$60,000 ($37,474) fine was issued by a magistrate at Sydney’s Downing Centre Local Court on March 31, following an investigation by Liquor & Gaming NSW (L&GNSW).

The violations stemmed from five social media posts made not by Colossalbet’s main accounts but instead a sub-brand, PuntHub, whose  October 2023 Facebook and Instagram posts were at fault

The ads in question broke section 33H of the Betting and Racing Act 1998, which outlines strict advertising rules aimed at minimizing harm and preventing offensive or irresponsible gambling promotions from reaching the public.

Bernadette Beard, Acting Executive Director of Regulatory Operations at L&GNSW, said the aforementioned conviction sends a strong signal to the industry and a deterrent for those who are careless.

“This is the first time a wagering operator in NSW has been prosecuted and convicted for publishing ads that offend standards of decency, dignity, and good taste,” Beard said.

She warned that regulators are in fact paying close attention to the plethora of digital advertising channels, and will not hesitate to take action against those who cross the line.

“This is a serious penalty. I would urge betting providers to take note and ensure the standards in the Act are being met in their advertising,” she added.

Australia’s regulatory bodies are certainly cracking down on gambling firms of this ilk, particularly as online advertising continues to expand. NSW in particular has among the toughest gambling ad restrictions in the country, including limits on inducements and content that could appeal to vulnerable audiences.

For Colossalbet, this is unfortunately not just a financial penalty as it showcases that there may need to be further internal control on social media output since the offence came from a sub brand.

The introduction of more employees or tighter processes may been to be done by the company to ensure it doesn’t happen again.

Based on the comments above from Beard, the message is clear: sloppy or provocative marketing could come at a steep price.

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