Key Highlights
- Flutter Entertainment introduced Sportsdream Rewards in Australia
- Subscription-based plans offering chances to win prizes and rewards by paying $19 monthly.
- The business falls under trade promotion statutes rather than gambling.
- Rewards clubs could circumvent gambling protections, warn advocates.
- The federal government is set to tighten regulations on the sector.
Expansion For $3b Sportsbet Owner Wager Rewards Club
Sportsbet’s parent company, Flutter Entertainment, launched its own venture into the lucrative rewards club sector in Australia through a new business called Sportsdream Rewards. For $19/month, the membership-based service allows you to enter prize draws for cash, cars, luxury holidays, and the like.
The revised current promotion offers members the opportunity to win a Ford Everest four-wheel drive or $100,000 cash. Along with them, selected brands also give rebates on sporting and live events. The launch continues to expand Flutter’s push outside of traditional gambling products amidst the rise in popularity of rewards clubs throughout Australia.
How does Rewards Club Model work
In addition to that, rewards clubs work on the regulations of trade promotion, enabling businesses to run prize draws associated with a product or service. Members pay monthly fees in exchange for entry into gives-aways and other discounts and perks, which the industry claims totals in the hundreds of millions of dollars worth of prizes.
According to corporate records, Sportsdream Rewards is operated by Free To Play Australia Pty Ltd, which is owned by Paddy Power, a subsidiary of Flutter Entertainment. The directors of the company are Sportsbet executives while its business address also appears to be Sportsbet’s Melbourne headquarters.
Gambling Reform Advocates Raise Concerns
The close relationships between a major betting operator and a rewards club business have alarmed gambling reform campaigners. Tim Costello, a prominent advocate, said casinos have exploited promotions and bonuses to lure customers for too long, then he warned gambling-like activity could be spread on the back of rewards clubs.
Critics also noted that amid the many gambling regulations, rewards clubs were subject to self-exclusion protections and even some responsible gambling requirements. Flutter rejected that data is shared between Sportsdream Rewards and Sportsbet, and claimed self-excluded Sportsbet customers are not pursued via the rewards club.
Government and Regulators Increase Scrutiny
Australia’s communication regulator, Australian Communications, and Media Authority has requested details from Sportsbet about its relationship with Sportsdream rewards. The questions have also been raised about how customer information could be used as companies become even more reliant on data and artificial intelligence to understand their behaviour.
The government has vowed to target dodgy lotteries and trade promotion schemes. It would stop businesses from charging people a subscription or membership fee in order to enter giveaways, with regulators claiming they have received around 250 complaints about trade promotion operators in the last two years.
FAQs
1.What are Sportsdream Rewards?
A rewards club that operates under the company of Flutter Entertainment.
2.How much does membership cost?
Sportsdream Rewards costs $19/month.
3. Why are advocates concerned?
They say the patrol system rewards clubs own less safety measures than betting companies.
4. Are fresh regulations in the works from the government?
The federal government proposed tougher laws to rein in trade promotion schemes.
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