Tabcorp hit with record AU$4.6m fine over “operational deficiencies” in Victoria
Extensive investigations by the VGCCC found Tabcorp had breached the Wagering and Betting Licence and Responsible Gambling Code of Conduct numerous times between August 2020 and February 2023.
Issues flagged include sending direct marketing material to customers who had opted out of receiving such material. In one instance, a player was contacted six times between October 2022 and February 2022.
The VGCCC also identified inadequate training of Tabcorp employees to responsibly deliver its products and services. This, it said, represented a failure by Tabcorp to minimise potential for gambling harm.
In addition, the Victoria regulator reprimanded Tabcorp for failing to provide appropriate support to a customer showing signs of distress or indicators of potential gambling harm.
On this final point, the VGCCC offered an example of one occasion where a Tabcorp account manager placed a ‘responsible gambling call’ to a customer whose betting patterns were flagged as potentially concerning. However, the call instead led to the manager allocating a deposit match promotion of $2,000 to the customer’s account.
Victoria regulator to make an example of Tabcorp
Speaking about the fine, VGCCC chair Fran Thorn said it is proportionate to the seriousness of Tabcorp’s misconduct. She issued a warning to the sector, noting this was the scale of punishment for rule-breakers in Victoria.
“Tabcorp’s breaches reflect systemic operational deficiencies and non-compliance with the conditions of its licence, the consequences of which have included significant harm to a customer,” Thorn said.
“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 that this kind of behaviour is not acceptable and will not be tolerated.”
Thorn also made reference to the example case where the at-risk player was offered the $2,000 deposit match promotion. She said this is indicative of a culture in which Tabcorp’s harm minimisation obligations were “not taken seriously”.
“The recorded call provides evidence of a lack of commitment to responsible gambling policies and demonstrates a lack of concern for the customer’s wellbeing,” she said. “Instead of offering support or making suggestions to help the customer manage their gambling, the call was used as an opportunity to encourage them to continue gambling.”
Tabcorp ordered to focus on harm minimisation in operational overhaul
As part of its ruling, the VGCCC ordered Tabcorp to implement a transformation programme to overhaul operations in Victoria. This, the regulator said, must address the failures identified during its investigations.
Tabcorp is being ordered to focus on harm minimisation and player safety protections. This includes complying with its Responsible Gambling Code of Conduct in Victoria.
Other aspects of the transformation programme include improving internal systems and controls to effectively manage compliance requirements. In addition, Tabcorp will look at controls for managing compliance with its obligations through its network of retail agents.
“The Commission has given Tabcorp clear instructions on what it must do to improve its operations and prioritise gambling harm minimisation,” Thorn said. “The directed transformation programme is intended to future-proof Tabcorp’s gambling operations to ensure it complies with the law.
“We will be actively monitoring to ensure that the transformation programme requirements are not only implemented quickly but are effective in ensuring ongoing compliance with the law.”
Tabcorp is yet to comment on the case. However, the VGCC noted Tabcorp cooperated with its investigations and has taken some steps to improve compliance with regulatory obligations.
More trouble in Victoria for Tabcorp
This is not the first time Tabcorp has felt the wrath of the VGCCC for breaching rules in the state.
In June this year, the Melbourne Magistrates’ Court ordered Tabcorp to pay $370,417 after the operator pleaded guilty to 43 charges for failing to prevent a minor from gambling in Victoria. The VGCCC initiated the case against Tabcorp in May 2023.
In September last year, the VGCCC also charged Tabcorp and several venues over underage gambling across an eight-month period between September 2022 and October 2023. The first case saw a magistrate fine the Preston Hotel for allowing a 16-year-old to use electronic betting terminals (EBTs).
This case also led to Tabcorp facing other measures in Victoria. In January, the regulator ordered Tabcorp to make the most of its EBTs in the state cashless. This was in direct response to incidents of underage gambling.
Also last year, Tabcorp as fined a then-record $1m over its conduct during a major system outage in 2020. Tabcorp’s Wagering and Betting System (WBS) went down on 7 November 2020, during that year’s Spring Racing Carnival.