The Australian Federal Court has mandated a hefty penalty of AU$5 million ($3.4 million) to a firm implicated in providing illegal online gambling services. This disclosure of the mandatory enforcement action came to light on Monday following grievances put forth by two consumers of the gambling platform. This verdict by the Federal Court has followed the civil proceedings initiated by the country’s authoritative communications and media regulator, the Australian Communications and Media Authority (ACMA), against Rhys Edward Jones, Diverse Link Pty Ltd and Brenton Lee Buttigieg as released by the Australian Associated Press.
The company was accused of violating norms related to online gaming as specified under the aegis of the Interactive Gambling Act 2001. The lawsuit alleged that Diverse Link transgressed the established regulatory paradigm by providing unauthorised online gaming services for over a year through Redraw Poker. The lawsuit contended that these alleged transgressions took place from March 15, 2021, to April 13, 2022.
According to the filed legal complaint, the illegally run gambling site proffered selling chips equivalent to AU$1, which could be obtained via bitcoin transactions or bank transfers. Federal Court Justice David Thomas clarified that this unlawful venture was associated with nearly AU$4.2 million ($2.8 million) in accumulated deposits. However, he added that this sum excluded the deposits made via virtual currency transactions i.e., bitcoins.
Penalty Enforced as a Preventive Measure
Two disgruntled gamers who experienced substantial losses at Redraw Poker reported the misconduct to ACMA. In response, Justice Thomas drew reference to the grievance expressed by one player who alleged that the website was devoid of any responsible gaming features. Further, the petitioner claimed that Redraw Poker facilitated the ability to establish multiple accounts under separate pseudonyms, whilst disregarding self-exclusion requests from players.
“The operation was unregulated without any checks, and nothing was in place to help obsessive problem gamblers,”
remarked Federal Court Justice David Thomas
In addition, Justice Thomas pointed out that the website lacked necessary safeguards or checks to combat compulsive gambling. He elaborated, “The penalty of this magnitude is, based on the evidence presented to me, much beyond mere business expenditure, and intended to effectuate the objective of general deterrence.” However, it remains uncertain if the imposed fine of AU$5 million ($3.4 million) might be recoverable.
Of late, ACMA has requested internet service providers (ISPs) to restrict access to a dozen illegal online gambling sites. This appeal comes in conjunction with its statutory authority and is a step towards increasing the catalogue of prohibited illicit online gambling service providers to reinforce online consumer safety.
