A major online sports betting agency has been fined $2.75 million for luring novice punters with a false free bets promotion.
Bet365 ran a 10-month promotion in 2013 and 2014 offering $200 in free bets for new customers.
The promotion was ruled misleading by the Federal Court in September last year.
The competition watchdog had pursued legal action as customers were required to deposit and gamble $200 of their own money before getting the $200 free bet.
Conditions required customers to gamble their deposit and promotion bonus three times before being able to withdraw any winnings.
The Federal Court on Friday ordered Bet365's Australian and UK companies, Hillside (Australia New Media) and Hillside (Shared Services), to pay a total of $2.75 million in penalties for its deceptive and misleading campaign.
Justice Jonathan Beach noted the conduct was serious, extensive in its duration and affected a large number of consumers.
ACCC chairman Rod Sims said the massive fines should serve as a warning to all businesses that it is unacceptable to promote "free" offers without ensuring all restrictions or conditions are also advertised.
"This is particularly relevant in an emerging industry like the online gambling market, where online and print advertisements target consumers who may not previously have used online gambling services," he said.
The Bet365 companies were also ordered to send a corrective notice via email to the affected customers.
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