A major bookmaker is offering financial incentives to prospective punters to bet online, despite a national ban on the practice.
For years, bookmakers have offered to match punters' deposits into betting accounts with bonuses and free bets.
For example, bookmaker Neds has an offer of "deposit $250, bet with $500".
The practice — which critics say encourages problem gambling — has now been banned under a code of practice, which took effect last week.
But Ladbrokes and Neds — which Ladbrokes owns — are still offering inducements.
On Tuesday, punters.com.au was promoting an offer for users to "deposit $250 and get $250 in bonus".
On another website, a pop-up ad offered a similar scheme through Neds, with another promotion enticing gamblers with the promise of "deposit $250, bet with $500".
Critics have warned offering inducements exacerbates problem gambling and encourages people to bet beyond their means.
There are already restrictions on giving incentives to people in NSW, Western Australia, Victoria and South Australia, but there has not been a ban on advertising the promotion until now.
Regulator's period of 'leniency'
The majority of Australian bookmakers are licensed in the Northern Territory and regulated by the territory's Racing Commission.
Competitors say Ladbrokes and Neds are taking advantage of a period of leniency from the NT regulator.
The commission's chairperson, Alastair Shields, told bookmakers on May 22 that the commission "would provide leniency for one month from commencement where any non-compliance issues are identified".
Other major bookmakers complied immediately with the laws.
A Google search for "online betting" displayed advertisements to join Ladbrokes, with an offer to match or increase the value of the first deposit made by new gamblers who sign up.
But Ladbrokes has defended its practices.
"Ladbrokes and Neds support the important consumer protections contained in the National Consumer Protection Framework," said a Ladbrokes spokesman.
"Consistent with the transitional arrangements, Ladbrokes and Neds will be compliant within the required timeframes."
Industry sources were incredulous at Ladbrokes' behaviour and questioned the bookmaker's commitment to repairing the industry's image.
"The founding members of Responsible Wagering Australia (RWA) have been working tirelessly with government for two years to improve consumer protections," one said.
"The industry's reputation and now Ladbrokes' kamikaze approach to government relations risks all of this.
"No other betting company is doing this, it so clearly fails the pub test."
Another member of RWA said no other operator had considered "shamefully abusing the conditions for a month".
"These are not the actions of a committed member of Responsible Wagering Australia," he said.
Push for penalties
RWA, which represents major bookmakers including Sportsbet.com.au and Ladbrokes, said all of its members were expected to follow the code.
"RWA and all of its members support the National Consumer Protection Framework," said Stephen Conroy, the executive director of RWA.
"All members are expected to abide by all elements of both the NCPF and the RWA Code of Conduct."
Monash University public health expert Charles Livingstone, who specialises in gambling studies, said it was clear some operators wanted to see how far they could push the boundaries.
"Regulators need to make it clear that the law and regulations mean what they say, and impose suitable penalties including suspension or cancellation of licences for breaches," Dr Livingstone said.
Long-time gambling reform advocate Tim Costello urged regulators to act.
He said the case showed how exploitative some bookmakers could be.
"Ladbrokes knows these new rules are being introduced to protect gamblers from harm," he said.
"But Ladbrokes doesn't want to protect gamblers from harm.
"Ladbrokes wants to keep harming gamblers simply to get more money.
"If Ladbrokes can exploit gamblers for one more day, it seems they will.
"If ever you needed proof that the online gambling industry is cynical and sick, this is it."
