An $1800 bonus bet offer has landed a prominent Victorian online bookmaker in trouble, with the state’s gambling regulator fining the operator $130,000 over customer care breaches.
After investigating complaints made against VicBet, the Victorian Gambling and Casino Control Commission (VGCCC) found the bookmaker twice acted in a manner which contravened the Victorian Bookmakers’ Association code of conduct.
In the first instance, the VGCCC said VicBet offered and provided an $1,800 bonus bet to a customer after they had requested their betting account to be closed in September 2022.
VicBet was fined $50,000 for the offence.
The bookmaker was hit with a further $80,000 penalty after it was found to have repeatedly sent gambling promotional material to a customer in March 2020 despite the account holder’s decision to permanently self-exclude from VicBet.
A description on VicBet’s wagering platform says it is managed by Rod Cleary, a mainstay of the Melbourne betting ring, along with his son Tim and is promoted as “Victoria’s most progressive online horse betting operation”.
Licensed by Racing Victoria in 1992, VicBet expanded its service to online customers in February 2005.
Announcing the fine on Thursday, VGCC chief executive Annette Kimmitt said it was a timely reminder to the gambling industry of the potential for people to experience severe harm when rules are not followed.
“Breaches can have serious consequences, not only in terms of punitive actions against the companies we catch out, but for people whose lives are affected by this behaviour,” she said.
“It is an egregious betrayal of trust, for example, to continue to send marketing materials to a person who has self-excluded from a gambling venue or closed a betting account.”
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It is an offence for a bookmaker to encourage or offer any credit, voucher or reward, or other benefit to induce an account holder to keep an account open after requesting its closure.
Sending correspondence or promotional material to customers who have self-excluded also contravenes the code of conduct.
“On these occasions, VicBet failed to live up to both its legal and social licences to operate, which include minimising the risk of harm to customers,” Ms Kimmitt said.
“Industry must respect the wishes of people who decide to have a break from or quit gambling.
“This means taking all reasonable steps to enforce harm prevention initiatives that customers commit themselves to, such as self-exclusion programs.”
VicBet was allowed an opportunity to ‘show cause’ as to why disciplinary action should not be taken.
Submissions from its legal representative were considered before a determination was made.
Warwick Barr
