The Australian Communications and Media Authority (ACMA) has recently completed a series of investigations into six licensed betting companies, uncovering significant violations of the self-exclusion rules that are designed to protect individuals seeking to avoid gambling. These breaches, involving prominent wagering providers like Tabcorp, LightningBet, Betfocus, TempleBet, Picklebet, and BetChamps, highlight critical gaps in the enforcement of the BetStop National Self-Exclusion Register. This national initiative allows people struggling with gambling addiction to voluntarily block themselves from engaging with gambling services.

The results of these investigations reveal that these companies failed to uphold the integrity of the self-exclusion system. In some cases, the companies allowed self-excluded individuals to register for new accounts, while others continued to offer gambling services to these individuals. Additionally, several companies were found to have targeted self-excluded customers with marketing materials, directly undermining the protective measures in place. Carolyn Lidgerwood, a member of the ACMA, highlighted the seriousness of these breaches in the authority’s official press release, emphasizing that “self-exclusion only works if wagering providers follow the rules.” She further stated that such violations “undermine the protections from gambling harm” that the self-exclusion system was designed to provide.

Widespread Non-Compliance Across Multiple Providers

The ACMA’s investigations spanned several months and were prompted by complaints from self-excluded gamblers who were able to bypass the system. In one notable case, Picklebet allowed an individual to open a new account only two minutes after being informed by the national register that the person had opted to self-exclude. This incident pointed to significant lapses in the company’s systems, with the ACMA noting that such breaches indicate the ease with which individuals can circumvent safeguards meant to protect them from gambling-related harm.

The investigation into Tabcorp, one of Australia’s largest betting companies, uncovered even more troubling findings. Despite being repeatedly notified by the ACMA that a person had self-excluded, the company allowed this individual to open an account using new information that no longer matched their details on the self-exclusion register. Tabcorp’s internal systems were found to be ineffective, failing to prevent this individual from accessing its services. Although the company stated that it was unaware of the person’s self-excluded status until it was flagged by the regulator, it ultimately accepted responsibility for the oversight. Tabcorp has paid a penalty of AU$112,680 (US$79,450) and has agreed to commission a third-party review of its customer verification processes. In addition, the company will train its staff to better understand and comply with its obligations regarding the self-exclusion register.

In response to these findings, the ACMA has taken several corrective actions against the companies involved. Betfocus, LightningBet, and TempleBet have been issued remedial directions, requiring them to commission independent audits of their systems and implement the resulting recommendations. These audits aim to ensure that the companies’ systems are capable of effectively preventing self-excluded individuals from accessing their services in the future. The ACMA has made it clear that any failure to comply with these remedial directions could lead to civil penalties.

The ACMA’s actions reflect its commitment to ensuring that wagering providers meet their regulatory obligations and protect vulnerable individuals from the harmful effects of gambling. “All licensed wagering providers need to be aware that the ACMA is investigating compliance and enforcing the rules,” said Lidgerwood. The investigations also send a clear message to the industry that breaches of self-exclusion protocols will not be tolerated, with stronger enforcement actions being considered for future non-compliance.

Impact on the Gambling Industry and the Role of BetStop

The BetStop register, launched in 2023, has been an essential part of the Australian government’s effort to combat problem gambling. The scheme was designed to provide individuals with the option to self-exclude from gambling services across the country, thereby reducing the potential harm caused by gambling addiction. As of late 2023, approximately 30,000 people had registered with BetStop, and the system is expected to grow as more individuals seek assistance in managing their gambling behaviors.

However, the recent investigations into these six companies underscore the challenges in ensuring that the system operates effectively. While the government has taken steps to create a comprehensive self-exclusion program, experts warn that individuals who are in the grip of gambling addiction may go to extraordinary lengths to circumvent the protections offered by the system. Alastair Shields, chair of the Northern Territory Racing and Wagering Commission, noted in 2023 that people with gambling addiction often exploit weaknesses in the system, highlighting the need for continuous improvement in self-exclusion safeguards.

The breaches identified in 2024 serve as a stark reminder that, while the self-exclusion system offers valuable protections, it is only effective when wagering providers adhere to their responsibilities. The ACMA has made it clear that companies must implement robust internal controls to prevent self-excluded individuals from gambling. Failure to do so could lead to severe legal and financial consequences.