The Victorian Gambling and Casino Control Commission (VGCCC) has imposed a substantial fine of AU$130,000 on VicBet, a registered online bookmaker, for breaching key customer care regulations. These violations involve offering incentives to customers who had requested to close their accounts and continuing to send gambling-related promotions to individuals who had self-excluded from the platform. The VGCCC’s investigation found that VicBet failed to comply with both the legal and social responsibilities set out for licensed bookmakers, highlighting serious risks to customer welfare.

Two significant violations lead to heavy penalty:
The VGCCC’s inquiry into VicBet’s operations uncovered two distinct infractions, each leading to a financial penalty. The first violation occurred in September 2022, when VicBet offered an AU$1,800 bonus bet to a customer after they requested the closure of their betting account. This direct attempt to incentivize the customer to keep their account open led to a fine of AU$50,000.

The second violation involved sending repeated gambling promotions to a customer who had permanently self-excluded from the bookmaker in March 2020. This disregard for the customer’s wishes resulted in a more substantial fine of AU$80,000. Self-exclusion is a critical harm prevention measure that allows individuals to voluntarily block themselves from gambling platforms. VicBet’s actions contravened the Victorian Bookmakers’ Association Code of Conduct, which specifically prohibits sending marketing materials to self-excluded customers.

VGCCC CEO Annette Kimmitt AM emphasized the severity of VicBet’s breaches, stressing the serious consequences that non-compliance can have for both the gambling operators and the individuals affected. “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 behavior,” Kimmitt said. The VGCCC pointed out that it is illegal for bookmakers to offer any form of incentive, such as bonuses or credits, to customers who have chosen to close their accounts, as this could encourage them to continue gambling against their wishes.

Furthermore, sending marketing communications to self-excluded individuals is considered an egregious violation of customer trust. “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,” Kimmitt added.

Industry warnings and call for better safeguards:
The fine serves as a stark reminder to the gambling industry about the importance of adhering to regulations designed to protect vulnerable customers. According to Kimmitt, VicBet’s actions represented a failure to live up to both its legal and social responsibilities. “The 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,” she said in the regulator’s press release.

The VGCCC has underscored the importance of minimizing gambling-related harm, urging operators to better respect self-exclusion and account closure requests. The regulator’s actions highlight the growing scrutiny placed on gambling companies to uphold their obligations to customers and ensure the integrity of responsible gambling practices.

Following the investigation, VicBet was given an opportunity to “show cause” as to why disciplinary action should not be taken. The bookmaker submitted responses through its legal representatives, but the VGCCC ultimately decided to enforce the penalties based on the findings of its investigation.

This case underscores the critical role of self-exclusion programs, such as the National Self-Exclusion Register, BetStop, which allows individuals to voluntarily ban themselves from all licensed Australian online and phone wagering providers. For those facing issues with gambling, there are resources available, including the 24/7 Gambler’s Helpline at 1800 858 858, offering free and confidential support.