Sportsbet, Australia’s largest online betting platform, has halted offering novelty betting options. The operator previously allowed users to wager on events such as the Grammys or reality shows like Australian Survivor. Sportsbet’s decision likely stems from growing regulatory scrutiny in Australia and rising concerns regarding the effect such offerings could have on high-risk bettors.
The Operator Faces Regulatory Scrutiny
Sportsbet has an estimated 45% market share in Australia’s online gambling space. However, a recent report by The Guardian revealed that the company has not announced any new novelty betting options for the last three weeks. The operator usually uses these offerings to diversify its wagering options, bolster engagement, and generate hype.
While the company did not provide any specific reasons for these decisions, industry insiders speculate that removing novelty bets could be related to an ongoing probe by the South Australian Liquor and Gambling Commissioner. Specific details regarding the investigation are unavailable, but a Sportsbet representative commented that novelty bets might return sooner rather than later.
Sportsbet is not currently offering any novelty markets. These markets may become available soon.
Sportsbet statement
Sportsbet faced criticism in 2022 due to promoting novelty bets tied to Rihanna’s Super Bowl halftime performance via social media TikTok. The Northern Territory, the jurisdiction where Sportsbet is regulated, recently issued an official statement clarifying that the operator has not breached any regulations on novelty betting but refused to comment on the South Australian investigation.
Such Offerings Might Attract More Problem Gamblers
Novelty bets have started to gain popularity among younger bettors. However, they face increasing scrutiny in most regulated markets due to concerns regarding integrity and abuse of inside information. Some cases like election betting have also brought legal questions, such as the current lawsuit between the US Commodity Futures Trading Commission and Kalshi, a prediction market company that accepts bets on real-world events.
The broader pushback against novelty betting could be another reason Sportsbet might step away from such offerings. A 2018 report commissioned by the South Australian Department of Human Services revealed that electronic gaming machines and novelty betting were more likely to attract medium or problem-risk gamblers than those wagering on traditional sports.
As the investigation by the South Australian regulator unfolds, the future of novelty wagering in the country remains uncertain. Such offerings have proven their popularity with certain demographics. However, ethical and compliance issues could mean the Flutter-owned operator may be better off focusing on the core elements of its business.