Ladbrokes and Neds have been fined the maximum amount allowed under Australian law for taking 78 bets during a LIV Golf event last year.
Online gambling during sporting competitions, known as in-play betting, is illegal in Australia.
Parent company Entain has paid the $13,320 infringement fine from the Australian Communications and Media Authority (ACMA) and has pledged to improve its compliance processes.
"Entain Australia acknowledges receipt of the ACMA infringement notice and has accepted the penalty," a company spokesperson said.
"Entain is disappointed that its internal processes did not pick up this timing error and will continue to review and refine procedures in an effort to avoid future incidents."
In-play betting risks
Chair of the Australian Communications and Media Authority, Nerida O’Loughlin, said online in-play betting needed tighter regulation than other forms of gambling.
"Online in-play betting increases the risk for those people experiencing gambling harm as it provides fast outcomes and allows for higher frequency of bets," she said.
Entain told the ACMA the breaches occurred due to its parent company entering into its system an incorrect start time for the Bangkok LIV Golf tournament in October last year.
Fifty-nine bets were accepted via the Ladbrokes service and 19 via the Neds service after the event had commenced. All bets were voided.
The company became aware of the error when a customer raised the issue.
"Entain is a highly experienced wagering operator and it is disappointing it did not have internal procedures in place to prevent or detect the error," Ms O'Loughlin said.
"The ACMA made it clear to the industry last year that they must have robust systems in place to ensure that online in-play bets are not made available or accepted."
It is the first infringement notice issued by the ACMA for a breach of in-play betting rules.
In 2021, the ACMA issued a formal warning to Tabcorp after it was found to have accepted 37 illegal online in-play bets on a United States college basketball game.
Entain has recently been fined more than $100,000 by the Racing Commission in the Northern Territory where it is licensed.
A House of Representatives committee is currently investigating online sports betting in Australia and is set to issue its report in the middle of the year.