Tabcorp Hit with Massive Fine for Regulatory Violations in Australia
The Victorian Gambling and Casino Control Commission (VGCCC) has imposed a record fine of AUD4.6 million (US$3.1 million) on Tabcorp, one of Australia's leading betting and gambling companies.
A Tabcorp betting shop in Victoria, Australia. (Source: Tabcorp)
LISTEN TO THIS ARTICLE:This punitive measure comes after a thorough investigation revealed that Tabcorp had committed multiple breaches of its Wagering and Betting Licence and the Responsible Gambling Code of Conduct over a period spanning from August 2020 to February 2023. The VGCCC's findings indicate that Tabcorp's violations were not isolated incidents but part of a pattern of non-compliance. Among the most egregious of these was the company's failure to honor a customer's request to be excluded from receiving direct marketing communications.
"The hefty fine, the largest the Commission has ever issued to Tabcorp, is proportionate to the seriousness of the licensee’s misconduct. It sends a clear message to the gambling industry that this kind of behaviour is not acceptable and will not be tolerated."
Despite the customer's clear opt-out, Tabcorp sent promotional materials to them on six separate occasions between October 2022 and February 2023. This disregard for consumer choice and privacy is a serious infraction of the regulatory standards set forth to protect individuals from the potential harms of gambling.
Moreover, the Commission's report highlights Tabcorp's insufficient efforts to mitigate gambling-related harm. The company was found lacking in providing adequate training for its employees, which is essential for the responsible delivery of gambling products and services. This shortfall is particularly concerning as it directly impacts the effectiveness of measures designed to prevent gambling addiction and its associated risks.
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A String of Violations
Another significant concern raised by the VGCCC was Tabcorp's inadequate response to customers showing signs of distress or exhibiting behaviors indicative of gambling harm. In one notable instance, a Tabcorp account manager made a 'Responsible Gambling Call' to a customer whose betting activities had raised red flags. However, instead of offering support or intervention, the call concluded with the account manager allocating a deposit match promotion of AUD2,000 (US$1,345) to the customer's account, a move that could potentially exacerbate the customer's gambling issues.
This fine represents the largest penalty ever issued by the VGCCC to Tabcorp, underscoring the severity of the infractions and the Commission's commitment to upholding the integrity of the gambling industry. It also marks the second time in two months that Tabcorp has been penalized by the regulatory body.
Previously, the company faced fines totaling AUD370,417 (US$246,790) for allowing a minor to gamble at multiple venues across Victoria and for failing to adequately supervise its Electronic Betting Terminals, further highlighting the company's repeated failures in adhering to regulatory requirements.
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