Australia’s leading betting operator, Tabcorp, has been hit with a fine exceeding $4 million due to violations of national spam laws.
The Australian Communications and Media Authority (ACMA), the body responsible for enforcing spam legislation, discovered that Tabcorp had sent over 5,700 unauthorized marketing messages to members of its VIP program.
This VIP initiative involves delivering personalized, direct messages about Tabcorp’s offerings via company representatives or agents to qualifying customers.
Between February 1 and May 1, 2024, nearly 3,000 SMS and WhatsApp messages were distributed without an option to opt out. Additionally, 3,148 of those messages lacked sufficient sender identification. Furthermore, eleven SMS messages were sent without the recipient’s consent between February 15 and April 29, 2024.
As stipulated by the Spam Act 2003, companies must obtain prior consent before sending promotional content. They must also include functional unsubscribe links and clearly identify the sender.
According to the ACMA, gambling-related promotional messages often feature personalized incentives, such as bonus bets, deposit matches, rebates, or event tickets.
“Completely Unacceptable,” Says ACMA
ACMA authority member Samantha Yorke expressed serious concerns over Tabcorp’s conduct, especially given its size and reach within the industry.
“This marks the first time ACMA has investigated and confirmed spam law breaches within a gambling VIP program,” she stated.
“The gambling sector needs to realize that spam rules apply to all forms of direct marketing — not just mass campaigns but also one-to-one outreach.”
“It is completely unacceptable that Tabcorp lacked proper systems to ensure compliance with spam legislation.”
VIP customers are not always high-stakes players; they can include individuals who are financially vulnerable or have incurred substantial losses.
The $4,003,270 fine is among the most significant penalties ever imposed by ACMA.
Sources say Tabcorp has already paid the fine, and it will be reflected in the company’s financial reports for the year.
In the past 18 months, ACMA has issued penalties exceeding $16.9 million for spam-related violations.
Tabcorp Responds: ‘We’re Taking Action’
In a statement, Tabcorp said its new leadership is addressing the issue.
“Under our new executive team, Tabcorp is actively remediating the situation and significantly enhancing our systems, processes, and compliance as part of a legally binding undertaking,” the company spokesperson said.
“Tabcorp cooperated fully during the ACMA investigation and remains committed to working closely with the authority to ensure future compliance.”
The company has agreed to a three-year court-enforceable undertaking, which involves a third-party review of its marketing systems, necessary upgrades, quarterly audits of its VIP marketing efforts, employee training, and ongoing reporting to the regulator.
ACMA confirmed it will monitor Tabcorp’s compliance closely in the years ahead.
This follows a $4.6 million fine imposed on Tabcorp by the Victorian Gambling and Casino Control Commission last year for failing to adequately train its staff on responsible gambling practices and for sending marketing materials to a customer who had opted out.
