Wagering giant Tabcorp has been fined $4.6 million and ordered to immediately transform its operations after the Victorian Gambling and Casino Control Commission (VGCC) found it failed in its approach to responsible gambling.
The VGCCC had found several instances of Tabcorp’s non-compliance with its regulatory obligations, specifically relating to incidents between late 2022 and early 2023.
The Commission found that Tabcorp:
- sent direct marketing material to a customer six times between October 2022 and February 2023, despite the customer having opted out of receiving promotional materials
- failed to minimise the potential for gambling harm through inadequate training of employees to responsibly deliver its products and services
- failed to provide appropriate support to a customer exhibiting observable signs of distress or indicators of potential gambling harm.
It found that on one occasion, a Responsible Gambling Call, where a customer’s betting patterns had been identified as potentially concerning, ended with an agreement to deposit match the customer for $2000.
Tabcorp was also found to have engaged in direct marketing with the customer despite them opting out from August 2020.
Direct marketing from August 2022 until February 2023 was found to have included bonus bets, deposit matches, and tickets to events.
The maximum fine for such breaches is $9.6 million, and the VGCCC determined Tabcorp’s breach to be mid-range.
“Tabcorp’s breaches reflect systemic operational deficiencies and non-compliance with the conditions of its licence, the consequences of which have included significant harm to a customer,” VGCCC chair Fran Thorn said.
“The hefty fine, the largest the Commission has ever issued to Tabcorp, is proportionate to the seriousness of the licensee’s misconduct. It sends a clear message to the gambling industry that this kind of behaviour is not acceptable and will not be tolerated.”
The responsible gambling call turned deposit match was singled out as a particular area of concern by the Commission.
“This action is indicative of a culture in which the licence holder’s harm minimisation obligations were not taken seriously,” Thorn said.
“The recorded call provides evidence of a lack of commitment to responsible gambling policies and demonstrates a lack of concern for the customer’s wellbeing. Instead of offering support or making suggestions to help the customer manage their gambling, the call was used as an opportunity to encourage them to continue gambling.”
Bren O’Brien
Tabcorp has been directed to implement a transformation program to overhaul its operations, in which it must focus on:
- harm minimisation and player safety protections, including complying with its Responsible Gambling Code of Conduct
- internal systems and controls to effectively manage its compliance requirements
- controls for effectively managing compliance with its obligations through its network of retail agents.
“The Commission has given Tabcorp clear instructions on what it must do to improve its operations and prioritise gambling harm minimisation. The directed transformation program is intended to future-proof Tabcorp’s gambling operations to ensure it complies with the law,” Thorn said.
“We will be actively monitoring to ensure that the transformation program requirements are not only implemented quickly but are effective in ensuring ongoing compliance with the law.”
The Commission acknowledged Tabcorp had cooperated in these investigations and had taken some steps to improve its compliance.
Tabcorp released a statement on Friday in response to the record fine.
"Tabcorp acknowledges the fine handed down by the VGCCC today," it read.
"The harm minimisation measures in place by Tabcorp at the time did not meet community or regulatory expectations. Nor did it meet the expectations that current management expect of the company and its people.
Tabcorp said it has taken significant steps to improve customer safety, including re-structuring its Safer Gambling Team.
"We are also introducing new technology to detect changes in customer behaviour faster so we can intervene sooner to protect customers from gambling harm," it said.
"Tabcorp will continue to work collaboratively with the VGCCC to support the important work they do to keep the community safe."
