Diverse Link Pty Ltd, an online poker operator, was slammed with a significant $5 million punishment in Australia for operating in breach of the nation’s online gambling rules by providing its services to Australian consumers. The Federal Court imposed the severe punishment after finding the corporation guilty of offering Australians unlawful internet gambling services after the Australian Communications and Media Authority (ACMA) filed civil lawsuits against it.
Illegal Online Poker Services Offered to Australians
Australians were permitted to play on the website from March 15, 2021, to April 13, 2022, which was reported by ACMA as a violation of Australia’s Interactive Gambling Act. Diverse Link, the owner and operator of the online poker platform “Redraw Poker,” denied this. This law forbids businesses from offering domestic players interactive gambling services.
Redraw Poker continued to serve Australian consumers for a considerable amount of time utilizing sophisticated technologies that permitted real money online poker play on computers, mobile phones, and other devices, as noted in the court decision by Federal Court Justice David Thomas. The site allowed users to register, purchase and redeem chips for use in games, and make payments via bank transfers or cryptocurrency/bitcoin.
Lack of Player Safeguards and Controls
Redraw Poker’s service was unregulated in Australia, Judge Thomas noted, and it lacked sufficient player safeguards and controls to avoid compulsive gambling. Two impacted players who complained that they had lost a lot of money playing on the site led to ACMA’s inquiry into the illicit practices. Despite several requests for self-exclusion, one user complained that the website lacked capabilities to promote responsible gambling and allowed users to open multiple accounts using false identities.
Penalty Unlikely to be Paid
Including bitcoin payments, deposits totaling over $4.2 million were connected to the criminal activity. However, Diverse Link declined to take part in the proceedings, making it extremely unlikely that the $5 million punishment will be paid. The significant financial fine, according to Judge Thomas, will serve as a deterrence to other businesses who engage in similar tactics.
Consequences of a Multifaceted Link
Along with the substantial penalties, the ACMA will deregister Diverse Link, thereby forbidding the business from ever again providing services to Australians. This case serves as a sobering warning to other operators in the online gambling sector about the repercussions of breaking regulatory regulations and emphasizes how crucial it is to follow responsible gaming guidelines to safeguard customers.
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