Tabcorp breaches regulations

Betting operator Tabcorp has received a record AU$4.6m (US$3.09m) fine from the Victorian Gambling and Casino Control Commission (VGCCC) in Australia.

The VGCCC issued the fine for multiple breaches of the?Wagering and Betting Licence and Responsible Gambling Code of Conduct between August 2020 and February 2023.?The breaches included:

• Sending direct marketing material to a customer six times between October 2022 and February 2023 despite the customer having opted out of receiving promotional materials.
• Inadequate training of employees to responsible deliver its products and services.
• Failing to provide support to a customer who had indicated observable signs of distress or indicators of potential gambling harm..

“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,” said VGCCC chair Fran Thorn, announcing the penalty.

It sends a clear message to the gambling industry that this kind of behaviour is not acceptable”

“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.” 

Tabcorp’s culture of non-compliance

The commission additionally brought up an occasion where the activity of one customer had been flagged as potentially concerning, leading to an account manager reaching out for a ‘Responsible Gambling Call.’

However, the end result of the call was to give the customer a deposit match bonus of AU$2000 (US$1346), further incentivising the customer to deposit more money on the site.

“This action is indicative of a culture in which the licence holder’s harm minimization obligations were not taken seriously,” Thorn said.

“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.”

Australian regulators tightening up

Tabcorp has become the latest operator to face a hefty fine in Australia during increasing scrutiny on the industry in the country. Against the backdrop of an ongoing debate on a full ban on all gambling advertising, DraftKings was also hit with an AU$586,000 ($394,000) fine earlier this month for illegal inducements.

Tabcorp was instructed to carry out a “transformation program”

As well as the fine, Tabcorp was instructed to carry out a “transformation program” aimed at improving its performance on reducing gambling harm. These included increased player safety protections, internal systems and controls to manage compliance requirements, and controls on compliance management for retail agents.

“The Commission has given Tabcorp clear instructions on what it must do to improve its operations and prioritise gambling harm minimisation” , said Thorn.

“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.”