A sports betting agency, Colossalbet, is facing the threat of closure due to a controversial social media campaign that violated gambling advertising laws. The agency pleaded guilty to multiple breaches of the NSW Betting and Racing Act following charges brought by Liquor and Gaming NSW.
The campaign in question featured explicit content, including an image of rugby league star Valentine Holmes with a bag of white powder, pornographic imagery, and provocative slogans. These ads, posted on Facebook under the banner Punthub, caught the attention of regulators for their inappropriate nature.
Ryman Racing, the licensed operator behind Colossalbet, was charged with unlawfully publishing prohibited gambling-related advertisements on social media platforms. The ads, visible to users without betting accounts, were deemed to have breached standards of decency and good taste.
Mark Ryman, the sole director of Ryman Racing, attributed the controversial ads to a young employee who posted them without authorization. Despite claiming the posts were intended as harmless jokes, the company now faces potential fines of up to $110,000, a significant threat to its operations.
Established in 2021 during the pandemic, Colossalbet offers markets on horse racing, sports, and elections. However, the company struggles to turn a profit amid stiff competition and regulatory challenges, such as point of consumption taxes and race field fees.
While Colossalbet has entered guilty pleas for some charges related to the contentious ads, others have been withdrawn. A sentencing hearing is scheduled for later this month, determining the fate of the embattled sports betting agency.
The federal government has proposed reforms to restrict gambling advertising, including bans on social media promotions and limits on TV and radio ads. These measures have faced pushback from industry stakeholders and are on hold pending the outcome of the upcoming federal election.
As the legal proceedings unfold, Liquor and Gaming NSW has refrained from commenting on the case, citing its ongoing status in court. The outcome of this high-profile dispute could have far-reaching implications for the gambling industry and advertising regulations in Australia.
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