Tabcorp fined $4 million for spamming VIP customers
Tabcorp has been fined more than $4 million over breaches of Australia’s spam legislation.
In one of the heaviest fines issued by the Australian Communications and Media Authority (ACMA), the regulator found that Tabcorp had sent 5700 unlawful messages to customers involved in its VIP scheme.
The ACMA revealed that between February 1 and May 1 last year, Tabcorp sent almost 3000 SMS and WhatsApp messages without providing an option to unsubscribe.
During the same period, 3148 SMS and WhatsApp messages did not contain adequate sender information.
Another eleven SMS messages were sent without consent between February 15 and April 29, 2024.
Authority member Samantha Yorke said the breaches were deeply concerning because they involved non-compliance on a large scale by an established gambling outlet that targeted VIP program customers.
“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program,” she said.
“The gambling industry needs to understand that spam laws apply to all direct marketing – whether it’s generic campaigns or personalised messages.”
In most cases, VIP customers are high-turnover clients and bookmakers have dedicated teams of staff to prompt these punters to keep betting with the wagering company.
“These programs often involve personalised messages offering incentives such as bonus bets, deposit matching, rebates and offers of tickets to sporting and other events,” Yorke said.
“VIPs should not be confused with gambling ‘high-rollers’. These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses.”
Under the Spam Act 2003, businesses must have consent to distribute marketing messages.
The notifications must contain information about the sender while providing an unsubscribe option.
“When people make choices to unsubscribe from a service they must be able to do so easily and their decisions must be respected by companies,” Yorke said.
Bren O’Brien
In emphasising that the breaches occurred before a change in leadership at the ASX-listed company, Tabcorp said it had been working with the ACMA during the investigation.
“Tabcorp acknowledges the recent findings of the ACMA,” a statement from the wagering firm said.
One of Australia’s biggest and best-known wagering firms, Tabcorp’s executive team has undergone a significant restructuring over the past 12 months, led by the appointment of former AFL boss Gillon McLachlan as chief executive.
“Tabcorp is remediating and significantly improving our processes, systems and overall compliance pursuant to an enforceable undertaking,” the company said.
“Tabcorp assisted the ACMA throughout the investigation and will continue to work closely with the regulator to ensure ongoing improved compliance.”
Warwick Barr
Agreeing to enter into a three-year enforceable undertaking, Tabcorp will be subject to an independent review of its direct marketing systems.
It will be required to make improvements and run quarterly audits of its VIP direct marketing campaigns.
Tabcorp will also have to provide staff training while reporting to the ACMA regularly.
“The ACMA will be watching closely to ensure TAB meets its commitments and complies with the spam laws in future,” Yorke said.
Cracking down on gambling safeguards and spam rules are current compliance priorities for the ACMA.
Over the past 18 months, businesses have been penalised almost $17 million for spam breaches.
Separately, Tabcorp was also forced to pay a $4.6 million fine last year after it breached licence and gambling laws.
Bren O’Brien
A Victorian Gambling and Casino Control Commission investigation found Tabcorp repeatedly breached its betting licence and the responsible gambling code between August 2020 and February 2023.
In one instance, a Tabcorp account manager placed a “responsible gambling call” to the customer whose betting patterns were flagged as potentially concerning by its own monitoring systems.
The October 2022 call ended with the manager communicating that a deposit-match promotion of $2000 would be made to the customer’s account.
Other breaches include sending direct marketing material to a customer six times between October 2022 and February 2023 after they had opted out.
The VGCCC also found that Tabcorp had failed to minimise the potential for gambling harm through inadequate training of employees.
Melbourne Magistrates’Court also fined Tabcorp $370,000 last year after the company failed to stop a 17-year-old from betting across multiple retail outlets.
Bren O’Brien
Related Articles
ATC wins court reprieve from administration until at least February
The Australian Turf Club will stay out of Racing NSW-imposed administration until at least February, after the Supreme Court of NSW issued a new order preventing any further action until the matter can go to a further hearing.
New blood at Racing NSW – Olympian and business veteran join board
The NSW state government has announced replacements for Garry Charny and Tony Shepherd on the Racing NSW board, with an Olympian and a Venues NSW board member joining the thoroughbred industry regulator on four-year terms.
Mary Collier chosen to oversee sweeping reforms to Queensland racing
A generational reset of Queensland racing has moved into its implementation phase, with Racing Queensland appointing Mary Collier to oversee the rollout of the McGrath review’s sweeping, government-endorsed reforms.