Tabcorp to Pay $2.6m Fine for Ad Rules Violations
Australian wagering company Tabcorp has been penalized with a fine of over AU$4 million (US$2.6 million) by the Australian Communications and Media Authority (ACMA) for violations of the country's spam laws. The breaches relate to the company's direct marketing practices targeting members of its VIP program. The penalty marks one of the most significant enforcement actions taken by the ACMA against a gambling operator under the Spam Act 2003.
LISTEN TO THIS ARTICLE:Between February 1 and May 1, 2024, Tabcorp sent more than 5,700 unauthorized marketing communications to VIP customers via SMS and WhatsApp. The messages either failed to provide a mechanism to opt-out or did not include adequate information identifying the sender.
Related: Tabcorp Hit with Massive Fine for Regulatory Violations in AustraliaSpecifically, 2,598 of these messages did not offer any option to unsubscribe, while 3,148 messages lacked sufficient sender details. In addition, the regulator found that 11 SMS messages were dispatched without having obtained the necessary consent from recipients between February 15 and April 29, 2024.
The ACMA highlighted that the breaches involved personalized communications commonly used in gambling VIP programs. These messages often promote incentives such as bonus bets, deposit matching offers, rebates, and tickets to sporting events.
The regulator stressed that regardless of the nature or intent of the marketing, all direct communications must comply with existing spam regulations. This includes ensuring that messages are sent only with proper consent, including an option to opt-out, and providing clear information identifying the sender.
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No Marketing Without Consent
Under the Spam Act 2003, businesses in Australia are legally required to obtain express or inferred consent before sending electronic marketing messages. Furthermore, messages sent with consent must provide a functional unsubscribe option and clear identification of the sender. The ACMA has reinforced its position that these rules apply equally to personalized VIP promotions as they do to broader marketing campaigns.
In addition to the financial penalty, Tabcorp has agreed to a court-enforceable undertaking lasting three years. This undertaking includes several mandatory compliance measures.
The company will be subject to an independent review of its direct marketing systems and must implement improvements based on those findings. It will also be required to conduct quarterly audits of its VIP program's direct marketing activities, provide training to relevant staff, and report regularly to the ACMA regarding its progress.
The ACMA, which said it has issued over AUD16.9 million (US$11.2 million) in fines in the last 18 months, warned that it will continue to monitor compliance closely and take action against entities that fail to meet legal requirements, especially where customer vulnerability is involved.
RELATED TOPICS: Regulation
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