The Australian Communications and Media Authority (ACMA) recently imposed a substantial $262,920 fine on Tabcorp Holdings Limited after discovering the company had accepted illegal in-play sports bets. The regulatory investigation revealed that from April to October 2023, Tabcorp processed 854 in-play wagers during 69 tennis matches, a practice explicitly prohibited by Australian law.

Under the Interactive Gambling Act 2001, online in-play betting—where bets are placed once a game has begun—is banned to protect vulnerable gamblers from increased harm. Carolyn Lidgerwood, an ACMA representative, emphasized the reasoning behind this regulation, noting that in-play betting allows bettors to place frequent bets on various outcomes within a single sporting event, which heightens the risks associated with gambling. “In-play betting increases access to gambling opportunities and exacerbates the risks of gambling harm,” she stated, highlighting the potential dangers to individuals at risk of gambling addiction.

Technical Error Led to Rule Violation

Tabcorp attributed these unauthorized bets to a technical glitch within their system. According to their report, the issue first arose in April 2023, but it went undetected and uncorrected until October 2023—a delay of six months. This lapse allowed the acceptance of hundreds of in-play bets, contravening national regulations. Lidgerwood commented on this oversight, expressing concern over the delay, particularly given Tabcorp’s prominent position in the Australian betting market. “Tabcorp is a major wagering operator, and it is concerning that it took some six months for the system error to be identified and fixed,” she noted, underscoring the responsibility of large operators to ensure compliance.

In response to the investigation, Tabcorp informed ACMA of several steps it has since implemented to prevent further breaches. The company assured the regulator that it has now fortified its systems to catch similar errors before they reach consumers. Additionally, Tabcorp confirmed that it had voided all impacted bets, ensuring that bettors faced no financial losses as a result of this error. The company did not benefit financially from the illegal bets, a factor ACMA took into account when determining the penalty.

A Previous Warning and Ongoing Compliance Efforts

This is not the first time ACMA has cautioned Tabcorp about in-play betting violations. In November 2021, the company was formally warned after accepting in-play bets on a U.S. college basketball game. The recent penalty highlights a continuation of regulatory challenges for Tabcorp in this area, despite the company’s stated commitment to compliance. Following the current incident, a spokesperson for Tabcorp, cited by the Australian Associated Press, acknowledged the company’s accountability, stating, “Tabcorp accepts the fine handed down by ACMA and acknowledges our systems at the time failed to prevent these in-play bets being accepted.”

The spokesperson further emphasized that Tabcorp is working with regulators to enhance tools that mitigate gambling risks and improve the safety of their offerings. “We continue to work with all regulators to improve harm minimisation tools so we can provide the safest sports entertainment experience we can,” they said. This statement aligns with ACMA’s insistence that betting platforms must maintain robust measures to avoid facilitating illegal gambling practices.