Sportbet Chief Executive Cormac Barry made a comment during his testimony earlier this week which may have caused some furor. Stating that Sportbet pays commissions to third parties that refer players, and that potential registrants are often offered free wagers.
According to Australian newspaper The Age, Mr. Barry admitted that Sportbet pays out somewhere in the neighborhood of 3-4 million dollars each year to affiliates, and admitted that Sportbet does not tell their new clients that the affiliate is making commission off of their wagers.
Senator Nick Xenophon pressed Barry, asking if he knew that not disclosing commissions is illegal, and may be in violation of secret commissions laws, which are different in each Australian state.
Mr. Barry responded to the question saying: ''I'm not familiar with that particular piece of legislation,''
Senator Xenophon said that the practice is "unconscionable" and stated that he would amend his pending bill on online gambling to ban commissions.
Frank Zumbo, who is Associate Professor of Business Law at UNSW then spoke up, and confirmed that not disclosing commissions may be against a law which bans deceptive conduct.
''I will be calling on the ACCC to investigate these claims thoroughly because we want punters to be given the full picture,'' Zumbo said.