BetStop breaches put Entain under ACMA eye

A breach of obligations under BetStop has seen Entain, the parent company of Ladbrokes and Neds, placed under a court-enforceable undertaking after an Australian Communications and Media Authority (ACMA) investigation found more than 500 instances where the company failed to comply with national self-exclusion rules.

BetStop has been active as the National Self-Exclusion Register since August 2023, and all wagering companies are required to comply and not allow self-excluded people to utilise a betting service and hold an account.

The ACMA investigated Entain and identified hundreds of breaches of its obligations, with many of the contraventions involving customers holding multiple accounts across the Ladbrokes and Neds services.

The investigation also found Entain failed to adequately promote BetStop in communications with customers 

The wagering giant could have been subject to a fine, as Tabcorp had been earlier this year, when it was penalised $158,400.

ACMA instead accepted an 18-month court-enforceable undertaking from Entain, under which it will commit to an independent review of its compliance systems and processes and to implementing any recommended improvements.

Should it fail to comply, it could be subject to court-ordered financial penalties.

“When someone signs up to BetStop, wagering companies must close all of that person’s accounts held within their services,” ACMA’s Carolyn Lidgerwood said.

“In this case, Entain’s systems did not adequately identify and link all wagering accounts held by those customers across its services, including one account that remained open for more than a year after the customer had self-excluded.”

Entain escaped a formal infringement notice as the ACMA said that the enforcement option was not available in these circumstances.

An Entain spokesperson said the company was committed to working with ACMA to prevent the issue from occurring again.

“We take all our regulatory responsibilities seriously. These matters arose during the early stages of a new national system, and we have worked constructively with the ACMA to implement meaningful enhancements to our processes and controls,” they said.

 “Our focus is on getting this right for our customers, particularly those who choose to self-exclude, and on building long-term trust through a strong, compliance-led culture.”

Entain’s previous compliance activities have come under the microscope in a separate context from AUSTRAC, which is pursuing enforcement action over failures to meet its anti-money laundering and counter-terrorism financing obligations.

That Federal Court case is set down for late November.