PlayUp Interactive, trading as Draftstars, has been handed a record fine of $586,000 for breaching New South Wales’ stringent gambling advertising regulations as reported by The Guardian earlier today. The Sydney-based operator, known as Australia’s largest daily fantasy sports provider, was penalised after being found guilty of 33 offences related to illegal advertisements. These ads, prominently displayed on its website, offered free bets and other inducements to potential customers—a practice explicitly outlawed in the state.

The fine was issued by Sydney’s Downing Centre local court, marking the most substantial financial penalty ever imposed for such violations in New South Wales. Under state law, it is illegal to offer any incentives to open, maintain, or refer others to betting accounts. These regulations, which are similarly enforced across other Australian states and territories, aim to curb the aggressive marketing tactics that can lead to problem gambling.

A zero-tolerance approach to gambling violations

Dimitri Argeres, Director of Compliance and Enforcement at Liquor and Gaming NSW, drew attention to the gravity of the offences and the company’s responsibility to adhere to the legal framework governing gambling advertising. “It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW,” Argeres stated, reflecting the regulator’s unwavering commitment to enforcing these laws. He further emphasised that Liquor and Gaming NSW will continue to adopt a zero-tolerance approach, with the hefty fine serving as a stark reminder of the consequences of non-compliance.

This record-breaking penalty comes at a time of intense national debate over the future of gambling advertising in Australia. Amid growing concerns about the impact of such ads on vulnerable populations, there has been a push for federal legislation that would impose a blanket ban on gambling promotions across all media platforms, including television, streaming services, and radio. The debate has also highlighted the reliance of Australian media companies on gambling ad revenue, prompting discussions about alternative funding models.

PlayUp Interactive, which operates not only in Australia but also in New Zealand, India, and the United States, has yet to publicly comment on the ruling. The company acquired Draftstars in 2018 from CrownBet, which later merged with Sportsbet. The penalty imposed on PlayUp far exceeds the previous record fine of $210,000 levied against Betr in 2023 for similar offences. As the largest daily fantasy sports operator in the country, PlayUp’s compliance with gambling laws will likely continue to be scrutinised closely by regulators.

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China’s Foreign Minister Wang Yi stressed the urgency of regional cooperation to combat cross-border crimes. Wang?highlighted recent joint operations between China, Myanmar, Laos, and Thailand, which resulted in the arrest of over 50,000 individuals involved in gambling and fraud. ?

Wang called for stronger border controls, improved intelligence sharing, and continued joint efforts to apprehend and repatriate criminals. He emphasised that sustained regional stability depends on consistent cooperation among neighbouring countries.  

Strategic long-term cooperation ?

According to a report by Global Times, Chinese experts have praised Wang’s proposal, noting that it reflects China’s strategic approach to fostering long-term regional stability through practical cooperation. The Ninth Lancang-Mekong Cooperation (LMC) Foreign Ministers’ Meeting, held in Chiang Mai, Thailand, reinforced this commitment, with leaders from six countries issuing a joint statement to combat cross-border crimes. Chinese observers underscored the importance of collective efforts in addressing the spillover effects of crimes like drug trafficking and smuggling, which threaten both regional and global security.?

Last week, Wang met with Myanmar’s leader Min Aung Hlaing in Nay Pyi Taw, focusing on enhancing cooperation to combat cross-border crimes, particularly online gambling and telecom fraud. Min emphasised Myanmar’s commitment to China as a trustworthy neighbour and expressed his willingness to strengthen ties, especially in law enforcement. He underscored the importance of collaboration in securing both nations’ interests, particularly in cracking down on activities that threaten regional stability. 

Deepening China-Myanmar relations?

Min reiterated Myanmar‘s support for China’s sovereignty and the one-China principle. The discussion also covered advancing Belt and Road cooperation, with both leaders expressing a desire to strengthen partnerships in various sectors, including infrastructure, agriculture, and energy. ?

Wang, meanwhile, reaffirmed China’s support for Myanmar’s sovereignty, unity, and territorial integrity, emphasising non-interference in Myanmar’s internal affairs. He praised the resilience of China-Myanmar relations, which have weathered the evolving international landscape.  

https://www.youtube.com/watch?v=JqZY8MbSEOw

Uganda’s Consul General to the United Arab Emirates (UAE), Ambassador Henry Mayega, (pictured above) has been recalled along with other consulate officials following allegations of unauthorised gambling activities within the Ugandan Consulate in Dubai. This scandal has sparked an official investigation to identify those responsible for the illicit operations.

State Minister for Foreign Affairs, Henry Okello Oryem, confirmed the investigation on Monday, expressing deep regret over the incident. He clarified that the officials were recalled to assist with the investigation, not expelled as some reports had suggested. Oryem stated that the outcome of the investigation would determine whether the officials could return to their posts. He reassured the public that Uganda’s relationship with Dubai remains strong despite the controversy, which he described as “a small storm in a teacup.”

The issue was first brought to light by Shadow Minister for Foreign Affairs, Haruna Nkunyingi Muwada, during a parliamentary session last month. Muwada criticised the lack of proper guidance provided to Uganda’s diplomatic missions, attributing the scandal to the widespread appointment of politically affiliated diplomats who, he claimed, often lack sufficient knowledge of foreign policy. He warned that the incident could have broader implications, potentially leading to stricter screening for Ugandans entering the UAE.

The recall of Ambassador Mayega follows closely on the heels of another diplomatic controversy involving Uganda’s High Commissioner to Canada, Joy Ruth Acheng. Acheng was declared a “persona non grata” and ordered to leave Canada by 21 August, 2024, due to unresolved issues.

“A storm in a teacup” says Foreign Affairs Minister

There is no doubt an urgent need for stronger oversight and clearer guidelines for Uganda’s diplomatic missions to prevent further damage to the country’s international standing. The allegations suggest that privately procured gambling machines, shipped under diplomatic cover between Russia and the Middle East, ended up being operated at the Ugandan Consulate in Dubai. This has raised serious questions about the criteria used in selecting Uganda’s representatives abroad, their competence, and the extent of their mandate.

State Minister Oryem assured that the investigation aims to identify the actual officials involved before any further action is taken by the government. He reiterated that if the officials are found guilty, they will not return to Dubai, but if they are innocent, they will be reinstated. Oryem also highlighted that Uganda’s relationship with Dubai has not been affected by the unfolding events, maintaining that it is a minor issue in the grand scheme of their diplomatic relations.

Repercussions for Ugandan nationals

Shadow Minister Muwada has been vocal about the need for reform in Uganda’s diplomatic appointments. He pointed out that a significant number of ambassadors and foreign service staff are political appointees from the ruling National Resistance Movement (NRM), which he believes contributes to incidents like this. Muwada’s concerns reflect a broader call for merit-based appointments and better training for diplomats to ensure they are well-versed in foreign policy and diplomatic protocols.

The scandal has also brought to light the potential repercussions for Ugandans traveling to the UAE. Muwada warned that the incident could lead to stricter screening processes for Ugandans, complicating travel and business relations between the two countries.

The recall of Ambassador Henry Mayega and the ongoing investigation into the alleged casino operations at the Ugandan Consulate in Dubai highlight significant issues within Uganda’s diplomatic corps. The incident calls for immediate reforms for all diplomatic missions to operate with integrity and professionalism, safeguarding their country’s international reputation.

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Eli Desatnik, co-founder of Pushub and VOT Media, spoke with SiGMA News about innovative strategies for generating traffic, discussing the importance of creativity and alternative sources. Eli Desatnik will carry on sharing his insights as a keynote speaker at the SiGMA Eastern Europe 2024 Summit. He will also moderate “The Effortless Push Notification” panel at the?Affiliate World Budapest event on 6 September.?

Gambling advertising restrictions are increasing worldwide, whether due to government decisions or corporate policies. Many companies that have traditionally served as traffic channels are now opting to shift their focus away from iGaming products or to reduce their visibility. As a result, operators and affiliates might find it challenging to reach their target audience. However, Desatnik, who embraces the philosophy that “when one door closes, another opens,” outlined how companies can discover new audiences or re-engage previous ones through innovative strategies.

Finding alternative traffic sources

According to Desatnik, there are always traffic channels that remain more receptive to advertising gambling products. He suggested considering options such as push notifications, pop-up ads, content sites, affiliates, and media buying agencies.

However, he warned that scaling with alternative sources can be challenging, as Facebook or Google’s traffic generation capabilities are hard to match. “It is best to work with media buying agencies and demand-side platforms that can connect you with a variety of traffic types and sources,” Desatnik explained.

Strategic content creativity

Desatnik noted that advertising regulation is rarely a simple matter of being “approved” or “rejected.” Understanding these regulations and their limitations can lead to creative solutions. “Creative texts, images, funnels, user journeys, and other adjustments can help maintain compliance without abandoning an entire advertising channel,” he advised. While this can be challenging and resource-intensive for some operators and affiliates, Desatnik suggested using external expertise if needed. “One of the main advantages of partnering with a media buying or advertising agency is their experience and resources dedicated to solving these issues,” he said.

The Ukrainian market

Regarding the Ukrainian market, Desatnik recommends combining lead generation techniques to capture consumer interest and convert it into sales. He discussed three techniques: purchasing paid media directly without intermediaries, overcoming the reluctance to share valuable data with hired traffic sources, and optimising advertising campaigns rather than abandoning them prematurely if they underperform.

Buying paid media

Desatnik explained that the iGaming industry traditionally preferred affiliate marketing (paying per lead or deposit) over direct paid media purchases (paying per click or impression). However, according to him, there has been a recent shift as brands are now cutting out media buyers and directly purchasing sponsored media. “This can lead to substantial savings,” Desatnik noted, “as private media buyers typically take a 30 percent margin.”

Sharing leads and deposits

“In the iGaming industry, there’s a traditional belief that limiting data shared with traffic sources is beneficial,” Desatnik noted, “If you pay for clicks, don’t share leads and first-time deposit data. If you pay for leads, share leads data but not first-time deposit data.” However, this approach can hurt campaign performance. Sharing data allows for a shift from cost-per-click to cost-per-lead and from cost-per-lead to cost-per-first-deposit. “Withholding data is like giving someone a race car without directions,” Desatnik stated. “Sharing both leads and deposit information allows traffic sources to better optimise campaigns by integrating their internal data with yours, ultimately improving campaign effectiveness.”

Salvaging campaigns

Desatnik explained that abandoning an underperforming advertising campaign can be tempting but advised against it. Instead, it’s better to focus on improving the campaign’s performance. “The goal is to adjust actions to turn losing (red) campaigns into profitable (green) ones, rather than aggressively blacklisting non-performing ones,” he said. Desatnik will explore this topic further during his SiGMA Budapest keynote, “Optimisation – From Red to Green,” on September 4.

WHAT’S NEXT: SiGMA East Europe Summit powered by Soft2Bet, happening in Budapest from 2 – 4 September.