Tabcorp Faces Record Fine Over 2020 Betting System Outage

In a significant blow to Tabcorp Holdings, the Victorian Gambling and Casino Control Commission (VGCCC) has imposed a historic AUD1 million ($638,060) fine on the Australian racing and wagering giant. The fine comes as a result of Tabcorp’s failure to comply with VGCCC directions during an investigation into a critical system outage that occurred during the 2020 Spring Racing Carnival.

Commission Chair Calls Tabcorp’s Conduct ‘Unacceptable’ in Outage Probe

The VGCCC, in its official statement, expressed its dissatisfaction with Tabcorp’s repeated failure to cooperate with the commission’s directives regarding the outage. The incident had left Tabcorp’s Wagering and Betting System (WBS) unavailable for a prolonged period of approximately 36 hours, causing significant disruption to customers and the industry.

Commission Chair Fran Thorn minced no words, describing Tabcorp’s conduct as “unacceptable.” Thorn emphasized the importance of licensees being forthcoming and cooperative when the commission undertakes investigations into matters of public interest, reported Business News Australia.

Thorn stated that the Commission had been compelled to utilize its compulsory powers and issue directives due to Tabcorp’s failure to provide the necessary information regarding the business continuity and disaster recovery capability of its systems. 

She further pointed out that it was Tabcorp’s non-compliance with these directives that had resulted in the fine. Additionally, she emphasized that all entities regulated by the Commission, regardless of their size, were obligated to exhibit transparency and honesty when dealing with the Commission and to respond to its lawfully issued directives. Thorn made it clear that any attempts to hinder or obstruct the Commission’s investigations would not be tolerated.

Tabcorp’s Non-Cooperation in VGCCC’s Investigation Raises Concerns

The VGCCC’s investigation traces back to a system outage on November 7, 2020, which coincided with a Saturday race day, a crucial period for the industry. Under its wagering and betting license for the WBS, Tabcorp was responsible for ensuring that its system remained continuously available.

The investigation was initiated by VGCCC’s predecessor, the Victorian Commission for Gambling and Liquor Regulation, after Tabcorp failed to voluntarily provide adequate information about the outage. According to the VGCCC, Tabcorp’s lack of cooperation during the investigation hampered the commission’s ability to understand the root cause of the outage and gain confidence that such a failure would not recur.

The VGCCC detailed that Tabcorp failed to comply with the first direction and later on Tabcorp was also found to have breached the second direction by submitting a compliant report four months after the deadline.

It’s important to note that failure to comply with VGCCC’s directions can lead to penalties of over AUD9 million ($5.7 million), underlining the gravity of Tabcorp’s actions.