The company partly owned by News Corporation offered 100-1 and 20-1 odds on major events including the Melbourne Cup, Cox Plate and NRL and AFL markets as part of its launch in October.
Unlike other gaming promotions, the inflated odds Betr offered were the only ones available to customers.
But that still breached strict NSW laws prohibiting the advertisement of any offer of an inducement to participate in a gambling activity, Liquor and Gaming NSW said on Friday.
The company was issued and has paid $210,000 in fines for 14 infringements.
Betr said the decision not to challenge the penalty notices was made to resolve the matter "amicably".
It pointed to Liquor and Gaming NSW guidance from 2020 stating "special odds" were unlawful when companies offered more than one price for the same outcome.
"We offered and advertised the 100-1 Melbourne Cup market in accordance with the law and entirely consistent with the guidance published by L&G NSW which clearly indicated this conduct was legal," a spokesman said.
"Whilst we co-operated fully with L&G, we do not accept, and have made no admissions to breaching NSW law.
"We are very conscious of our regulatory obligations."
The fines - for advertisements in newspapers, on radio and television, and online - mark a high-water mark for fines issued to a wagering company for unlawful inducements in NSW.
"This company tried to attract a new customer base and establish a significant market share with promotions that we consider crossed the line, using inducements that had the potential to cause harm to the community," Liquor and Gaming NSW regulatory director Jane Lin said in a statement.
"Wagering operators can legally advertise their products in a variety of ways but they can't advertise or promote inducements such as offers of enhanced odds or bonus bets to entice people to open a betting account."
The regulator said the ads were voluntarily withdrawn after it contacted Betr.
News Corporation's Nationwide News owns 42 per cent of Betr, while former Melbourne Storm executive chairman Matthew Tripp and former BetEasy chief executive Andrew Menz hold senior roles.
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