The Rise of Rewards Clubs in Australia’s Gambling Landscape
One of the world’s largest gambling companies is making a significant move into Australia’s rewards clubs sector, sparking concerns among anti-gambling advocates. Sportsbet’s parent company, Flutter Entertainment, has launched Sportsdream Rewards, a new player in the rewards club space that has seen rapid growth in recent years.
Sportsdream Rewards offers members a range of enticing incentives for just $19 a month. These include entries into prize draws for cars, cash, and luxury holidays, along with rebates on sporting events and discounts from various brands. The current draw features either a brand new 4WD or $100,000 in cash, highlighting the appeal of such programs.
The rewards club industry has claimed to have distributed hundreds of millions of dollars to members who pay a monthly fee to join. Participants are entered into draws for prizes that can include cash, cars, or even houses. These clubs operate under “trade promotion” laws, which are designed to allow lotteries or giveaways to promote a product or service rather than being the main offering itself.
The Australian Broadcasting Corporation (ABC) has previously identified over 80 companies that use this legal loophole to operate their rewards clubs. Notably, Sportsdream Rewards is operated by Free To Play Australia Pty Ltd, which maintains close ties to Sportsbet despite not publicly acknowledging these connections. ASIC filings obtained by the ABC reveal that Free to Play’s owner is Paddy Power, a subsidiary of Flutter Entertainment.
Sportsbet executives, including its chief executive officer (now the boss of Flutter APAC) and chief commercial officer, serve as directors of Free to Play Australia Pty Ltd. The company’s registered address is listed at Sportsbet’s headquarters in Melbourne, further underscoring the link between the two entities.
Flutter Entertainment is one of the largest gambling companies globally, owning platforms like Fanduel, Sky Betting & Gaming, and Sportsbet. In 2025, the company generated $US9.4 billion ($13.1 billion) in revenue, reflecting its substantial market presence.
Unlike some rewards clubs that may be thinly disguised lotteries, Sportsdream Rewards offers additional services such as rebates on sporting tickets. A spokesperson for Flutter Entertainment stated that the company provides “access to curated offers from sports and lifestyle brands, including discounts, exclusive deals, and rebates on sporting and live events.”
However, gambling reform campaigners are concerned that loosely-regulated rewards clubs are being used to circumvent strict gambling and self-exclusion laws. Prominent advocate Tim Costello suggested that the role of Sportsbet’s CEO at the company was “not an accident.” Flutter denied any data sharing between the two companies but did not address why a separate entity was used to obscure the relationship.
The ‘Wide Open Gate’ of Self-Exclusion Laws
This is not the first time that Flutter has used a subsidiary company to diversify its offerings. The Australian Financial Review reported that Free to Play ran a free NRL tipping contest in 2022, which was later used to promote Sportsbet’s gambling services. According to the AFR, the contest’s winner had self-excluded from Sportsbet.
Flutter stated that the game, which included age verification and associated promotions, complied with federal and state-based regulations. However, the issue remains: rewards clubs do not need to follow the same laws as gambling companies. This includes preventing minors from signing up, setting deposit limits, providing transparent odds, and adhering to the self-exclusion register.
Gamblers who want to prevent themselves from betting can sign up to the national register to avoid being targeted by gambling advertising or opening accounts. However, as rewards clubs fall under ‘community gaming’ in most states, self-exclusion restrictions do not apply. This means that gambling companies can target individuals who have self-excluded through other branches of their parent companies that are not classified as gambling.
Flutter denied that Sportsbet users who have self-excluded are targeted by Sportsdream Rewards. However, the company did not respond to the ABC’s question about whether a self-excluded gambler could sign up to the service. It also denied that customer data from the rewards club is used in profiling and targeting potential Sportsbet customers or in their gambling propensity modelling.
Concerns Over Data and Regulation
Gambling reform activists remain concerned about the close relationship between the companies. Independent MP Monique Ryan, who has campaigned on gambling reform, said that gambling companies and rewards clubs operate outside regulation, leaving vulnerable groups “susceptible to significant emotional and financial harm.”
“It’s a wide open gate,” Mr Costello agreed. “It means serious profits for them, and serious losses for the community.”
Data has become increasingly valuable to the industry, with companies using artificial intelligence to understand the behavior and preferences of potential and existing users. This helps influence how users bet and how long they stay on the platform, according to a new report from ACMA.
“The massive competition of sports betting companies trying to get more market share means they have to look for other ways to do it,” Mr Costello said.
New Laws Target ‘Dodgy Lotteries’
The federal government has pledged to crack down on “dodgy lotteries,” which include Keno-style lotteries as well as rewards clubs. A draft bill states that ‘trade promotions’ these companies use cannot offer a subscription or membership fee, or any other fee for entry into these giveaways.
As the legislation catches up, complaints are stacking up. In the last two years, there have been almost 250 complaints against companies using trade promotions to state regulators and ACMA. However, enforcement of the current laws is scarce, with only a small handful of companies investigated and penalised.
“These companies are saying the quiet part out loud: online gambling is inadequately regulated,” Dr Ryan said.
