Sportsbet accused of pilfering business information from Aussie Punt Club

Paddy Power’s Australian subsidiary, Sportsbet, is facing litigation following the filing of a Supreme Court case against it by the Adelaide-based Punt Club, which makes the startling claim that virtually the entire Sportsbet management team joined its social player pooling site in order to study the business model.

Sportsbet subsequently launched a test version of its own Punters Club, the filing alleges, claiming that Sportsbet is infringing its copyright and asking for the court’s guidance regarding the award of compensation.

Punt Club chief executive and founder Jason Neave claims that Sportsbet managers had an ulterior motive in joining his Punt Club after they had made an unsuccessful attempt to negotiate a deal with him which would have given them exclusive partnership rights. Neave rejected the proposal and instead suggested a link exchange, which was not taken up.

Sportsbet has rejected Neave’s accusations, asserting that the idea of players forming social syndicates to gamble is not new, but a generic and commonplace concept which Neave cannot claim as his own.

The company claims that studying how Neave applies his rules does not breach copyright or his website’s terms and conditions.

The court’s decision is awaited.