Betting and gaming giant “raising the game by creating the most engaging betting and entertainment experiences business in the world”, Tabcorp, has landed in hot water with regulators after sending thousands of unsolicited messages to its VIP customers.
As a result, the Australian Communications and Media Authority (ACMA) has slapped the company with a fine of just over AU$4 million (US$2.6 million), after discovering serious breaches of the country’s spam laws.
Over 5,7000 Messages Sent to VIP Members
Between February and May 2024, Tabcorp reportedly fired off more than 5,700 marketing messages via SMS and WhatsApp to members of its VIP program.
Many of these messages didn’t include an unsubscribe option, and some didn’t clearly identify the sender, both clear violations under Australia’s Spam Act 2003.
Worse still, regulators say at least 11 of the messages were sent to individuals without any consent at all.
“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program,” said ACMA authority member Samantha Yorke.
“These programs often involve personalized messages offering incentives such as bonus bets, deposit matching, rebates and offers of tickets to sporting and other events.”, Yorke further added.
While the term “VIP” might conjure up images of wealthy high rollers, Yorke stressed that’s not always the case.
“VIPs should not be confused with gambling ‘high-rollers’. These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses. It is utterly unacceptable that TAB did not have adequate spam compliance systems in place,” she said.
“Decisions Must Be Respected by Companies”
Under the Spam Act, companies are required to get permission before sending promotional messages. Even when they have consent, messages must include a clear way to unsubscribe and must tell the recipient who the sender is.
“When people make choices to unsubscribe from a service, they must be able to do so easily and their decisions must be respected by companies,” Yorke added.
She further explained the industry must understand that spam laws apply to all forms of direct marketing, whether generic campaigns or personalised messages, while calling Tabcorp’s lack of proper spam compliance systems “utterly unacceptable”.
In addition to the financial penalty, Tabcorp has agreed to a court-enforceable undertaking that will run for three years.
The agreement requires the company to overhaul its marketing systems, undergo independent audits every quarter, provide training to its staff, and report its progress regularly to the ACMA.
At the start of the month, the watchdog announced that Buddybet, Ultrabet, VicBet, and Topbet breached regulations meant to protect individuals who signed up for the National Self-Exclusion Register.
In May, ACMA fined PointsBet Australia over half a million Australian dollars due to violations of the online marketing and self-exclusion regulations.
In December, Tabcorp’s chief executive officer, Gillon McLachlan, laid off 10% of the company’s total workforce, citing the company’s financial and regulatory troubles.