Marketing & Affiliates
Marketing & Affiliates
industry insider told iGB they do not consider this to be a“ realistic option”.
Shannon, however, says Neds will begin geo-blocking, along with using different advertising in other states, and that he thinks the regulator’ s intent is“ not to penalise the operators who are doing what they can in this regard”.
This does seem a somewhat optimistic view from an operator that itself just recently incurred the wrath of the NSW regulator. In May, Neds was fined AU $ 18,000(€ 11,370) for publishing advertising that breached the current rules with regard to inducements for NSW residents.
In late June, ClassicBet was also fined— in its case AU $ 9,470— for unlawful gambling advertising. In both cases, Liquor & Gaming NSW put out releases making clear it was about to get even tougher on advertising that breaches the law.
In a statement after Neds’ conviction, Liquor & Gaming NSW deputy secretary Paul Newson said:“ While this case needed to be prosecuted under the laws that existed when the offences took place, new laws will ensure operators will incur substantially higher penalties for irresponsible practices.
“ Under the new laws, maximum fines for offering unlawful inducements to gamble have been increased tenfold, and directors of wagering businesses can be held personally liable and criminally convicted for gaming offences.”
From early July, companies could face fines of up to AU $ 55,000 per offence, and individual directors can also be fined up to AU $ 5,500 per offence committed by an operator.
In fact, the wording of the amended Act is such that it would seem to apply to anything viewable in NSW published anywhere in the world, although Nettleton says he does not see the NSW government trying to prosecute overseas operators.
“ They have certainly got the perception that it applies to everybody but the main focus, I’ d say 99 % of the focus, is really on the local operators not the overseas operators,” he says.“ There are a couple of references in the guidelines in respect of more global advertising so they perceive that it applies to them. But it is a separate point whether they would seek to enforce against them.”
Uncertainty for affiliates For affiliates – and indeed other publishers such as newspapers and television stations – the guidelines did provide some comfort in that they made clear that publishers would not be held accountable, at least not initially, for publishing illegal advertisements provided by operators.
The guidelines state that if the ad is“ in the form provided or was approved by or on behalf of the betting service provider” and the publisher has not been notified that the ad is prohibited, then they will not be guilty of an offence. Once notified an ad is in breach of the Act they must then stop running it.
However, given many affiliates produce their own content and also publish user generated content related to gambling offers, there is still a big risk that affiliates could find themselves in hot water with the regulator.
And while big affiliates may have the ability to change their business practices to adapt to the new rules, whether or not the smaller one-man band type outfits can do so remains to be seen. If not, and operators start finding themselves under fire with the
“ Because of the lack of consultation, there are likely to be broad unintended consequences which will conflict with the regulations in other Australian states and the ability of operators to service customers outside of NSW”
Stephen Conroy
NSW government for the actions of their affiliates, a similar situation to that which has occurred recently in the UK may emerge.
If only big affiliates are able to geo-block and make sure they comply with the NSW rules, smaller affiliates may find themselves cut from Australian operators’ programmes in the same way some found themselves cut by UK-facing operators.
It’ s too soon to tell how tough NSW will be on operators and affiliates when it comes to the new laws, and the regulator has specifically stated that the guidelines are subject to change in future. But it’ s certainly likely that there will be a lot more caution adopted Down Under from 2 July.
116 iGamingBusiness | Issue 111 | July / August 2018