The finances of News Corp-backed gambling company Betr’ could take a big hit if the Penrith Panthers win the NRL grand final, due to a generous inducement that attracted a record fine and criticism from a regulator.
When the gambling company launched in late 2022, it offered 100-1 odds on the Penrith Panthers winning a third consecutive grand final with bets capped at $10. A Penrith victory is now short odds and a likely outcome according to most analysts.
The bookmaker offered similar inducements for the Melbourne Cup, the Cox Plate and AFL markets in a bid to lure customers away from established gambling companies.
Betr, which was listed for sale in March after being fined a record $210,000 for media ads promoting the 100-1 odds in News Corp outlets, has already sought to limit damage caused by a Panthers victory.
“EXCLUSIVE to your account, lock in a win on the Panthers,” said a text message sent last month to one punter who had placed money on Penrith.
“You can cash out your bet on the Panthers in the 2023 NRL Premiership Futures Market for $500 in CASH and your original stake refunded. Cashed out funds must be turned over in full before you are able to withdraw.”
The $500 amount is half of what Betr would have to pay if the Panthers won the final.
Another cash-back offer sent in July to someone who had bets on the Panthers, and on Geelong winning the AFL grand final, was offered $500. At that time, Penrith led the competition but Geelong were mid-table.
In May, one gambler was offered $100 to cash out on the Panthers.
Betr was contacted for comment.
During the spring carnival, the Australian Financial Review reported Betr had placed bids with rival bookmakers to reduce its exposure on the Melbourne Cup by around $10m.
In April, Betr was fined a record $210,000 for splashing the 100-1 inducements to gamble in affiliated News Corp newspapers, radio and television stations.
Liquor and Gaming NSW’s executive director, Jane Lin, said the $210,000 fine was appropriate given “significant breaches of the law” by Betr.
“This company tried to attract a new customer base and establish a significant market share with promotions that we consider crossed the line, using inducements that had the potential to cause harm to the community,” Lin said.
“In many cases, such promotions can only be legally offered to betting account holders who, unlike the general public, have made a conscious decision to open an account and receive this information.”
Betr stopped the inducement campaign when the NSW regulator approached it with concerns last year. By agreeing to pay the fine without contesting it, Betr may have avoided a potentially lengthy court process.
At the time, a Betr spokesperson said the company did not believe it had breached regulations and called on the state regulator to clarify guidance given to the sector.
Betr was established with the financial backing of News Corp, the former BetEasy chief executive Matthew Tripp’s TGW and Las Vegas firm Tekkorp, with the intention of utilising News Corp’s media assets to promote the company.
News Corp distanced itself from Betr before the company was put up for sale, with the company’s US leadership telling analysts it would not put more money into the company. Two News Corp executives left Betr’s board this year.
News Corp’s international accounts for the past six months of 2022 revealed about $51.2m (US$33m) in losses to affiliates, a share of which was attributed to Betr.
