The News Corp-backed betting agency Betr is in the process of paying out $40m in bets after Penrith’s grand final win on Sunday, which the company believes is an Australian record.
Betr attracted significant controversy earlier this year over its widely advertised launch campaign offering 100-1 odds on the Melbourne Cup, something that prompted regulatory intervention and a record $210,000 fine.
The company also offered 100-1 odds on this weekend’s NRL and AFL grand final winners, Penrith and Collingwood. Bets were capped at $10, and Betr received tens of thousands of bets on the Panthers, who were favourites to take out their third NRL premiership in a row.
After Ivan Cleary’s team won on Sunday night, Guardian Australia understands Betr is in the process of paying out $40m. The company believes the payout is the largest in Australian history and the process of paying out customers is expected to take up to a week. It is unclear how much the betting agency will need to pay out on Collingwood’s AFL grand final win, but it is understood to be much lower than the NRL result.
The bookmaker and Betr founder Matt Tripp told the Nine newspapers the agency still expected to profit from its broader launch campaign, which offered similarly inflated odds on a range of sports, not just the NRL.
“The important thing to note, with that launch campaign, we had always anticipated it would cost us somewhere between $50m and $80m, depending on how the results fell,” Tripp said.
“But from the 320,000 customers we have acquired through running that campaign, the gross profit we have generated from those customers alone is $225m.”
Speaking prior to Sunday’s final, Tripp said the purpose of the deal was to attract customers, who would go on to bet on other events, such as racing.
“Everyone is out there saying ‘Penrith will kill them’, but nothing would make me happier if we’re paying out tens of millions of dollars on Penrith because it gives tens of thousands of punters an opportunity to reinvest at the start of the spring carnival.”
In April, Betr was fined a record $210,000 for advertising its 100-1 odds on affiliated newspapers, radio and television stations when it launched last year.
The company offered the odds on every horse in the Melbourne Cup, provided they bet less than $10. Similar deals were offered on the NRL, AFL and Cox Plate.
Betr stopped the advertising campaign when the New South Wales regulator approached it with concerns last year. Its decision to pay the fine without contest meant it avoided a potentially lengthy court process.
At the time, a Betr spokesperson said: “We offered and advertised the $100-1 Melbourne Cup market in accordance with the law and entirely consistent with the guidance published by Liquor and Gaming NSW which clearly indicated this conduct was legal,” the spokesperson said.
“Whilst we cooperated fully with Liquor and Gaming, we do not accept, and have made no admissions to breaching NSW law. Our decision not to challenge the penalty notices was made to resolve the matter amicably.”
In Australia, Gambling Help Online is available on 1800 858 858. The National Debt Helpline is at 1800 007 007. In the UK, support for problem gambling can be found through GamCare on 0808 8020 133. In the US, the National Council on Problem Gambling is on 800-522-4700
