PointsBet ordered to pay penalty for spam breaches in Australia
The Australian Communications and Media Authority (ACMA) has ordered PointsBet to pay a penalty of AU$500,800 (US$321,706) for breaching marketing and gambling self-exclusion regulations in the country.
ACMA identified over 800 messages from PointsBet that breached spam laws in Australia. It also said the operator flouted laws related to the BetStop national self-exclusion register (NSER).
Setting out the case, ACMA said between September and November 2023, PointsBet sent out 705 emails with a direct link to its betting products without including an unsubscribe function. The regulator said PointsBet “mischaracterised” these emails as non-commercial despite promoting their services, thus making them subject to spam rules.
ACMA also identified seven marketing emails that were sent without recipient consent, as well as 90 commercial texts without sender contact information.
PointsBet falls foul of self-exclusion rules
ACMA also flagged issues related to PointsBet contacting consumers who had self-excluded from gambling. An NSER investigation found PointsBet sent 508 marketing messages to self-excluded individuals in August and September 2023.
NSER laws in Australia prohibit licensed wagering service providers from sending marketing materials to those registered with NSER. By contacting these people, PointsBet was ruled to have breached regulations.
ACMA Chair Nerida O’Loughlin hit out at PointsBet over the failures. She said there are no excuses for gambling companies that fail to understand their legal obligations to consumers.
“It is deeply concerning that these failures have impacted PointsBet’s customers, some of whom had taken proactive steps to exclude themselves from online wagering,” O’Loughlin said.
“People signing up to the NSER are taking positive steps to remove online gambling from their lives. Their decision must not be compromised by companies like PointsBet.
“Wagering providers must also appropriately identify where messages promote or advertise their services and ensure that those messages comply with the rules, including the obligation to promote the NSER.”
Committed to improvements
Summing up the case, ACMA acknowledged no excluded customers were able to place bets with PointsBet during the period investigated. This is because their registration with NSER prevents them from gambling with any licensed provider in Australia.
ACMA also said it accepted court-enforceable undertakings from PointsBet committing it to reviews into its compliance with spam and NSER laws. The operator will also carry out all recommended improvements and provide regular training to staff to avoid further breaches.
“This action should serve as a warning to all wagering providers that they must meet their legal obligations or face the consequences,” O’Loughlin said. “We will closely monitor PointsBet’s compliance with its undertakings and with the spam and NSER laws.”