Extract from ABC News
The federal communications watchdog is examining whether Foxtel breached gambling laws by broadcasting ads for two illegal offshore betting companies during last week's test cricket match between Australia and New Zealand.
The ads included a prominently placed "virtual billboard" on the playing field for Parimatch, a Cyprus-based online casino and bookmaker the Australian Communications and Media Authority (ACMA) blocked to internet users in 2022 after an investigation found it was illegally offering unlicensed gambling to Australians.
The broadcast also featured electronic barrier ads for 1xBat, a website that automatically directs users to a offshore bookmaker called 1xBet, which was among a number of international gambling sites that ABC Investigations revealed last year was offering odds on amateur Australian cricket matches.
1xBet was previously a sponsor of English Premier League clubs Chelsea and Liverpool until its UK registration was cancelled following media reports in the UK that revealed it was offering bets on children's sport, cockfighting, and topless casinos.
1xBet has been blocked in Australia since an ACMA investigation found it was offering an illegal gambling service in 2018, however, it is still accessible via virtual private network (VPN) services that allow users to change their location.
The ads appeared throughout Fox Sports and Kayo's broadcast of the match in Wellington and were commissioned by New Zealand Cricket (NZC), which has responsibility for broadcasting advertising rights for matches played on its soil.
After the ABC alerted ACMA to the advertisements, the regulator said it was examining the matter "but is yet to make a decision on whether to open an investigation".
It noted there is an exemption to the rules in cases whether the advertising is "accidental or incidental" and the broadcaster "does not receive any direct or indirect benefit" for publishing the advertisement.
"Whether that is the case depends on the facts and circumstances of each matter," an ACMA spokesperson said.
A Foxtel spokesperson said the virtual ads were included in the live feed provided by NZC.
"This is the live feed that is available to broadcasters outside of New Zealand, including Fox Sports Australia," they said.
"Fox Sports Australia does not have any control over the production of the live world feed nor the ability to modify or edit the virtual advertising included in the live world feed.
"The Foxtel Group did not receive any revenue or benefit from the inclusion of these virtual advertisements and believes that its broadcast complied with relevant laws."
NZC said it negotiated the advertising deals with a third-party rights agency in India.
It said the virtual ad for Parimatch, which was digitally superimposed in the broadcast feed, was not visible to New Zealand audiences.
It did not respond to questions about why the ad was visible to viewers in Australia.
"We're liaising with our Australian broadcast partner, Fox Sports, to discuss options and possible solutions should they be required," an NZC spokesperson said.
NZC said it only became aware that 1xBat was connected to the bookmaker 1xBet after being notified by Cricket Australia about the company's involvement in gambling.
The Guardian reported last week that Cricket Australia also signed an advertising deal with 1xBat to superimpose virtual billboards visible to audiences in Pakistan watching the Boxing Day test match against Australia.
Cricket Australia reportedly cancelled the deal after Pakistani authorities raised concerns about the company's gambling connections.
"NZC will be reviewing its position on this advertising ahead of the second Test against Australia," NZC said in its statement.
The New Zealand Department of Internal Affairs said it was investigating whether the ads were in breach of its gambling promotion laws.
"It is an offence to publish or arrange to publish an overseas gambling advertisement in New Zealand," an internal affairs spokesperson said.
"This includes displaying, or arranging to display, at a sports ground in New Zealand, an advertisement that promotes gambling or a gambling operator that is outside New Zealand."
Parimatch and 1xBet have not responded to questions.
Despite ACMA's blocking of Parimatch in 2022, Australians are still able to access the site through a mirror site with a slightly altered URL.
The site features a neon-rendered illustration of Paul Hogan's famous character Crocodile Dundee, and offers users a range of gambling services including online poker machines, virtual blackjack tables and roulette.
Online casinos are illegal in Australia, but a promotional video on the website falsely claims: "Parimatch operates legally in all states of Australia under licence from the Curacao gaming authority."
Like many international gambling companies, including 1xBet, Parimatch is licensed in the tiny Caribbean nation of Curacao.
The ACMA spokesperson said it was common for illegal gambling operators to set up mirror sites after being blocked in Australia.
Sports management researcher Hunter Fujak from Deakin University said the Parimatch and 1xBet ads were amplified by other networks, including the ABC, running highlight packages of the match in their news bulletins.
"We know increasingly sport consumers are watching highlights, especially for long form matches," he said.
Dr Fujak said advertising unlicensed offshore gambling companies created several risks for Australian sports fans, including exposing them to websites not subject to Australian consumer protection regulations.
"Given that these are ads that are inserted digitally, it should be conceivable to figure out ways to remove them," he said.
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