Betfair Pty Limited, an Australian online betting exchange, has been ordered to pay a penalty of AU$871,660 after being found guilty of breaching Australia’s Spam Act. An investigation by the Australian Communications and Media Authority (ACMA) uncovered that Betfair had sent 148 emails and text messages to its VIP customers between March and December 2024. These communications were sent to customers who either had not consented to receive them or had withdrawn their consent, making the messages a direct violation of Australian spam laws.

The ACMA also revealed that during the same period, Betfair had sent six additional text messages and emails that failed to include an unsubscribe option, further compounding the violation. These messages, targeting members of Betfair’s VIP program, included promotional offers such as free event tickets and account deposit incentives.

ACMA’s Strong Stance on Spam Law Violations

Samantha Yorke, an ACMA authority member, expressed the organization’s zero tolerance for such breaches, particularly when they involve vulnerable customers. “VIP programs are generally designed to attract and retain customers with high betting activity; however, this doesn’t mean VIP customers are well off or can afford losses,” Yorke said in ACMA’s press release. She emphasized the irresponsibility of sending gambling promotional messages without consent or the option to opt-out, pointing out that it violated the customer rights established under the Spam Act.

The ACMA has been actively enforcing the Spam Act for over 20 years, and Yorke described Betfair’s actions as “simply unacceptable.” She added, “Sending promotional gambling messages to these customers without consent or with no option to opt-out is incredibly irresponsible in addition to being non-compliant.”

As part of its enforcement action, Betfair has entered into a two-year court-enforceable undertaking. This agreement mandates that the company invest in an independent review of its marketing messages and implement necessary improvements. Additionally, Betfair is required to undertake staff training, conduct quarterly internal audits, and regularly report to the ACMA on its compliance efforts.

The penalty follows a series of similar actions by the ACMA in the gambling sector. In a recent enforcement, Tabcorp was fined AU$4 million for sending over 5,700 unsolicited messages to its VIP customers. Additionally, the ACMA has continued its focus on the gambling industry, as businesses in this space face increasing scrutiny for their compliance with spam and consumer protection laws.

Ongoing Efforts in Spam Enforcement

Over the past 18 months, the ACMA has collected over AU$16.6 million in fines from businesses that have violated spam regulations. As part of its continuing efforts to combat unwanted communications and scams, the ACMA has emphasized its commitment to ensuring businesses adhere to established consent requirements. The regulator’s ongoing focus on the gambling industry highlights the growing pressure on companies to meet stringent marketing and consumer protection standards.

For businesses seeking to comply with Australian spam laws, the ACMA has also released a statement of expectations regarding the use of consent in electronic marketing. This initiative is designed to guide businesses in properly managing their marketing practices and avoiding future penalties.

Betfair’s fine represents the second significant enforcement action involving VIP customers in the gambling sector. ACMA’s Samantha Yorke pointed out that the regulator is sending a clear message to all gambling operators: they must have robust compliance systems in place to manage their customer communications. The action against Betfair, combined with other recent fines, underscores the industry’s growing focus on ensuring the protection of customer rights in line with Australian law.

In a separate but notable regulatory action, AUSTRAC has launched civil penalty proceedings against Mount Pritchard District and Community Club (Mounties) for serious non-compliance with anti-money laundering (AML) laws. AUSTRAC alleges that Mounties failed to maintain a compliant AML/CTF program, despite operating a large gaming business with 1,400 poker machines and hundreds of millions in annual revenue.

AUSTRAC CEO Brendan Thomas pointed out the club’s significant exposure to money laundering risks, particularly given its cash-heavy operations. Mounties has been accused of failing to implement adequate risk assessments, staff training, and transaction monitoring controls, which are crucial in managing potential money laundering activities. “Mounties is one of the largest and most profitable club groups in New South Wales. It owns 10 venues, eight of which operate approximately 1,400 poker machines, generating hundreds of millions of dollars from the money gambled on those machines,” Mr. Thomas explained.

He also emphasized the importance of ensuring adequate risk management systems are in place for businesses operating in the gambling sector. “A business operating at this scale, in a cash-intensive sector, is exposed to a high degree of money laundering risk,” he stated on AUSTRAC’s website. “Relying on third-party providers doesn’t absolve a business of its obligations under the AML/CTF Act.”