Gambling Companies Crack Down on Promo Abuse with Account Restrictions

In a bid to curb the exploitation of promotional offers by savvy gamblers, more than a dozen gambling companies have implemented restrictions on individuals who consistently make money through these incentives or employ unconventional betting strategies deemed “not commercially viable.” 

Confidential Correspondence Reveals Gambling Industry’s Inner Workings

Confidential correspondence obtained by Guardian Australia supports the allegations brought forth during the parliamentary inquiry, shedding light on the inner workings of the gambling industry. 

According to industry insiders who preferred to remain anonymous, the restrictions were deemed necessary due to the widespread exploitation of promotions, particularly those offering “deposit matches,” where bookmakers match the wagered amount. Exploitative gamblers have resorted to creating numerous accounts under different identities to exploit these promotions repeatedly, thus manipulating the market dynamics.

However, another perspective on the matter suggests that promotions have evolved into a tool to keep less skilled gamblers engaged. Higher taxes imposed on the industry led to odds adjustments designed to offset the lost revenue, making promotions a crucial instrument to discourage those losing money at an accelerated rate from quitting.

A deeper dive into the industry’s practices reveals that gambling companies employ incentives to encourage wagers from what they classify as “recreational” gamblers, with the flexibility to reclassify individuals as “professional” gamblers based on their discretion. Some companies have openly admitted to implementing restrictions on customers who pose financial risks to them.

Betr, Ladbrokes, and Sportsbet Provide Insights into Account Restrictions

According to the emails seen by Guardian Australia, News Corp-backed company Betr restricted a customer’s account in late 2022 following an internal review. The email to the customer did not provide a specific reason for the restrictions but outlined the withdrawal of access to bonus bet and bonus cash promotions, early payouts, double winnings, and deposit offers.

Even global gambling giant Ladbrokes weighed in, emphasizing that promotional offers were designed for recreational gamblers. Entain, the parent company of Ladbrokes, clarified that while they do restrict accounts, they do not block individuals who win consistently. The company stated that in 2023, over 130,000 customers had won from them. They also emphasized their obligation to maintain a fiscally responsible business for shareholders.

Australia’s largest gambling company, Sportsbet, has also adopted restrictions on the use of promotional offers. Customers were informed that promotions were intended for those betting for recreation or entertainment purposes, and excessive use of promotions on their accounts would render them ineligible for future promotions.

A Sportsbet spokesperson clarified that promotions were not universally available to all customers and that their offering was a commercial decision for their business. They stated that Sportsbet did not close accounts solely based on customers winning or using promotions.