Sportsbet Online Gambling Site Faces Threats of Action From Australia

Aug 12, 2011
Australian Sportsbet's Cormac Barry who in support of Internet gambling testified before the federal government enquiry into the industry made a comment that ignited a fury among one politician in particular. Cormac stated that Sportbet pays commission to third parties who refer gamblers and offer free bets to potential customers. Commissions were paid from the gambling activities of the customers that were referred without knowledge to the player. Senator Nick Xenophon who is on a campaign to ban online gambling asked Barry if he was aware that not disclosing commissions may be in breach of the secret commissions legislation. Barry commented ''I'm not familiar with that particular piece of legislation.'' Professor of Business Law confirmed that it was a breach of laws against deceptive conduct. ''I will be calling on the ACCC to investigate these claims thoroughly because we want punters to be given the full picture,'' Zumbo warned. ''Third parties can be on a finder's fee or they can gain a share of revenue from the customer, so an affiliate shares,'' Barry said, adding that this was a standard business practice. Xenophon described the practice as ''unconscionable'' and would amend his upcoming bill on online gambling, currently being considered by the inquiry, to ban commissions.
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