Takeover target PointsBet has been fined over $500,000 by the Australian Communications and Media Authority (ACMA) for breaching rules regarding spam, while it has entered a court-enforced undertaking for failing in its self-exclusion obligations.
The spam breach stems from a period in 2023, when PointsBet was found to have sent 705 emails containing a direct link to its betting products without including an unsubscribe function.
ACMA’s investigation found PointsBet also sent seven marketing emails without recipient consent and 90 commercial texts that did not have sender contact information.
BetStop – the National Self-Exclusion Register (NSER) – also conducted an investigation which found PointsBet sent 508 marketing messages to self-excluded individuals in August and September 2023.
BetStop was introduced in August 2023 and under its laws, people registered with the NSER must not be sent marketing materials from a licensed wagering service.
ACMA found that no excluded customers were able to place bets with PointsBet during the period investigated. It said due to the “complex and novel matters investigated” that an imposition of a financial penalty was not available to the ACMA for the NSER breaches.
However, it had accepted comprehensive court-enforceable undertakings from PointsBet to review its compliance with spam and NSER laws, and improving regular training for all relevant staff.
This is the first time ACMA has used such an enforcement action since the introduction of BetStop.
The $500,800 fine over the spam breaches adds to more than $14 million in spam penalties that Australian businesses have paid over the past 18 months.
The actions of PointsBet during this time drew a stern response from ACMA Chair Nerida O’Loughlin, who said, given the risks to people experiencing gambling harms, there are no excuses for gambling companies failing to understand their legal obligations.
“It is deeply concerning that these failures have impacted PointsBet’s customers, some of whom had taken proactive steps to exclude themselves from online wagering,” O’Loughlin said.
“People signing up to the NSER are taking positive steps to remove online gambling from their lives. Their decision must not be compromised by companies like PointsBet.
“Wagering providers must also appropriately identify where messages promote or advertise their services and ensure that those messages comply with the rules, including the obligation to promote the NSER.”
O’Laughlin said the action against PointsBet was significant in the context of its enforcement powers.
“This action should serve as a warning to all wagering providers that they must meet their legal obligations or face the consequences. We will closely monitor PointsBet’s compliance with its undertakings and with the spam and NSER laws,” she said.
Bren O’Brien
PointsBet, a publicly listed wagering company with businesses in Australia and Canada, is currently the subject of two competing bids, one from Japanese company MIXI, which has been recommended by the Board, and one from betr.
The $360 million betr bid was originally rebuffed, but it has continued to press its case, and recently acquired 19.9 per cent of PointsBet.
It then put in a resubmitted bid with full financing details and PointsBet has now agreed to enter a due diligence period after conceding it could be seen as a superior bid to MIXI’s.
