Tabcorp Holdings Limited, Australia’s leading gambling operator, has been hit with a significant fine of AUD $4,003,270 (approximately USD $2.6 million) following breaches of the country’s spam laws. The Australian Communications and Media Authority (ACMA) uncovered that the company had sent over 5,700 marketing messages to its VIP program members in violation of the Spam Act 2003. This fine is one of the largest penalties issued by the ACMA in recent years, highlighting the growing scrutiny of marketing practices in the gambling sector.

Details of the breach and regulatory findings:

An ACMA investigation revealed that between February 1 and May 1, 2024, Tabcorp sent 2,598 SMS and WhatsApp messages to its VIP customers without offering an unsubscribe option, which is a clear violation of the Spam Act’s requirements. Additionally, 3,148 messages lacked essential sender information, and 11 SMS messages were dispatched without obtaining the proper consent from recipients.

ACMA member Samantha Yorke described the breaches as especially concerning due to Tabcorp’s stature as a well-established operator in the gambling industry. “This is the first time the ACMA has found spam violations in a gambling VIP program,” Yorke said in the official ACMA release. “VIP programs, often seen as exclusive, can target individuals who may not be high-rollers but are instead more vulnerable, experiencing significant financial losses.” She stressed that the gambling industry must understand that spam laws apply to all forms of direct marketing, including personalized campaigns targeting customers with incentives such as bonuses, deposit matching, and event tickets.

Tabcorp has responded to the findings by entering into a three-year court-enforceable undertaking. This agreement mandates the company to review and overhaul its marketing systems, ensuring greater compliance with the spam laws moving forward. As part of the undertaking, Tabcorp must conduct quarterly audits of its VIP direct marketing practices, improve internal systems, and provide regular reports to the ACMA. Furthermore, Tabcorp has pledged to train its staff on the new procedures and ensure that all future communications comply with the law.

The ACMA will closely monitor Tabcorp’s adherence to these commitments, ensuring that the company respects the unsubscribe requests from its customers and provides clear sender information in all future communications.

Yorke emphasized the critical importance of respecting unsubscribe requests, stating, “When people choose to opt-out of receiving messages, their decisions must be respected by businesses.” This is part of the ACMA’s broader push to ensure transparency and fairness in marketing practices across industries.

Industry-wide impact and regulatory focus:

This ruling is part of a larger trend of increased penalties in the gambling sector for breaching spam and consumer protection laws. Over the last 18 months, the ACMA has levied over AUD 16.9 million in fines against businesses violating spam regulations. The watchdog continues to focus on cracking down on non-compliant operators, underscoring the need for companies to adapt to the evolving regulatory environment.

The penalty imposed on Tabcorp follows a series of similar actions against the company. In the past year, Tabcorp faced a AUD $4.6 million fine from the Victorian Gambling and Casino Control Commission for failing to train staff properly in responsible gambling practices and sending marketing materials to customers who had opted out. Tabcorp also received a fine in 2024 for violations related to in-play betting, highlighting the company’s ongoing struggles with compliance.

In addition to its action against Tabcorp, the ACMA has also been active in blocking illegal online gambling sites that breach the Interactive Gambling Act 2001. The latest sites targeted for blocking include Casiny, CoinPoker, Crown Play, Fafabet9, SlotFred, Smart 93, and Vigor Spin. These sites are now inaccessible to Australian consumers following the ACMA’s request to internet service providers (ISPs) to block them. Since the ACMA began its enforcement efforts in 2019, it has successfully blocked 1,251 illegal gambling and affiliate websites, with 220 illegal services exiting the Australian market.