Tabcorp ordered to pay AU$4.0 million for spamming VIP customers
The Australian Communications and Media Authority (ACMA) has ordered Tabcorp to pay AU$4.0 million (US$2.6 million) for breaching spam laws by sending over 5,700 marketing messages to customers of its VIP programme.
An ACMA-led investigation found Tabcorp sent 2,598 SMS and WhatsApp messages to users between 1 February and 1 May 2024. This, the regulator said, was done without an option for customers to unsubscribe.
A further 3,148 messages, across SMS and WhatsApp, did not contain “adequate sender information” during the same period. In addition, ACMA said 11 SMS messages were sent without consent between 15 February and 29 April last year.
Australia’s Spam Act 2003 requires all businesses to have consent before sending marketing messages. The act also states these messages must contain a working unsubscribe option and information about the sender.
As Tabcorp fell short of these requirements, ACMA ruled it was in breach of national law. As such, the regulator deemed it necessary to issue a financial penalty. It marks the first time that ACMA has investigated and found spam breaches in a gambling VIP programme.
ACMA slams “unacceptable” behaviour by Tabcorp
ACMA member Samantha Yorke hit out at Tabcorp over the matter. She said the breaches were “deeply concerning” as they involved non-compliance by a large and established gambling operator.
“The gambling industry needs to understand that spam laws apply to all direct marketing – whether it’s generic campaigns or personalised messages,” Yorke said.
“VIPs should not be confused with gambling ‘high-rollers’. These types of programmes 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.
“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.”
In addition to the penalty, Tabcorp has entered a three-year, court-enforceable undertaking. This includes an independent review of its direct marketing systems, making improvements, running quarterly audits of its VIP direct marketing, training staff and reporting to ACMA regularly.
“ACMA will be watching closely to ensure TAB meets its commitments and complies with the spam laws in future,” Yorke added.
Another breach by Tabcorp
Tabcorp has faced several penalties for rule breaches in Australia in the past 12 months. This includes a record $4.6 million fine for a series of failures in the state of Victoria.
Failures include sending direct marketing material to users who had opted out of receiving such material. State regulator the Victorian Gambling and Casino Control Commission also flagged issues such as inadequate employee training and failing to support a user showing indicators of potential gambling harm.
More recently, it was fined $262,920 in November 2024 for breaking rules on in-play betting. Tabcorp was found to have taken 854 in-play bets across 69 tennis matches between April and October 2023. Australia does not currently allow consumers to place in-play wagers.
Tabcorp blamed a technical bug in its systems for the breaches, adding that it voided all bets. This meant consumers did not suffer losses and the operator did not profit from the errors. However, ACMA proceeded with the penalty having previously warned Tabcorp over in-play betting.
Tabcorp has not commented on the latest penalty.