The investigation was initiated following an incident involving a business development manager at Entain subsidiary Neds. On July 31, during a conversation with a racegoer at Fannie Bay Racecourse, the manager revealed that specific bonuses were available to anyone who opened a Neds account using a QR code on their business card. The manager even gave the racegoer a business card and encouraged them to share the QR code with others. A commission member, who overheard the conversation, obtained the business card from the racegoer and created a Neds account using the QR code. As a result, the commission appointed a betting inspector to look into the matter and contacted Entain regarding the allegations on September 7, 2021.
In response, Entain provided a list of individuals who signed up for Neds using the QR code on July 31, along with the initial bonus they received. The company admitted that two contracted business development managers were present at Fannie Bay Racecourse that day and confirmed that they distributed business cards with QR codes linked to Neds’ sign-up page. While Entain accepted that the language used by the manager constituted an inducement to gamble, they argued that this was done without the company’s authorization. Additionally, Entain claimed that offering the bonus through a QR code was compliant with the code, as it could only be obtained after signing up for an account, thus not qualifying as an inducement to gamble.
However, the Northern Territory Racing Commission determined that Entain violated clause 5.5(a) of the NT Code of Practice for Responsible Service of Online Gambling 2019. This clause prohibits online gambling operators from offering any credit, voucher, or reward to individuals for opening a betting account. By providing a sign-up bonus accessible through a QR code on their employees’ business cards, Entain was found to have breached the ban on inducements to gamble. The Racing Commission rejected Entain’s assertion that the bonus offer on the business card complied with the NT Code, stating that the QR code indeed constituted an inducement to gamble since it encouraged players to create a Neds account. The Racing Commission also dismissed the argument that the business development managers acted independently, pointing out that the offer was made through company-issued business cards. Consequently, Entain was fined the maximum penalty of $26,690, or 170 penalty units. The Commission had the authority to potentially suspend or revoke Entain’s license but opted for the monetary penalty.
