Betting giant Tabcorp to pay $4.6m fine for gambling harm minimisation failures in VIC

Announcing the $4.6 million fine today, Commission Chair Fran Thorn said Tabcorp Wagering (Vic) Pty Ltd had repeatedly breached the Wagering and Betting Licence and Responsible Gambling Code of Conduct between August 2020 and February 2023.

"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 to the gambling industry that this kind of behaviour is not acceptable and will not be tolerated."

The Commission’s findings included that Tabcorp:

• sent direct marketing material to a customer 6 times between October 2022 and February 2023, despite the customer having opted out of receiving promotional materials
• failed to minimise the potential for gambling harm through inadequate training of employees to responsibly deliver its products and services
• failed to provide appropriate support to a customer exhibiting observable signs of distress or indicators of potential gambling harm.

On one occasion, a Tabcorp account manager placed a ‘Responsible Gambling Call’ to the customer whose betting patterns had been flagged as potentially concerning by Tabcorp’s monitoring systems. The call ended with the Tabcorp account manager communicating that a deposit match promotion of $2000 would be allocated to the customer’s account.

“This action is indicative of a culture in which the licence holder’s harm minimisation obligations were not taken seriously," Thorn said.

"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.

" 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.”

The Commission also took action on other breaches identified during its investigations. To address these breaches, Tabcorp has been directed to implement a transformation program to overhaul its operations.

Tabcorp has been ordered to focus on the following:

• harm minimisation and player safety protections, including complying with its Responsible Gambling Code of Conduct
• internal systems and controls to effectively manage its compliance requirements
• controls for effectively 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. The directed transformation program 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 program requirements are not only implemented quickly but are effective in ensuring ongoing compliance with the law,” Thorn said.

The Commission acknowledged Tabcorp had cooperated in these investigations and had taken some steps to improve its compliance with its regulatory obligations. It has accepted a deeper transformation is required and has committed to pursuing this in line with the Commission’s directions.

Customers can self-exclude for free from all licensed Australian online and phone wagering providers by registering with BetStop - the National Self-Exclusion Register.

Anyone negatively affected by their own or someone else’s gambling can contact the 24/7 gambling helpline on 1800 858 858 for free and confidential support.

Tabcorp shares are down 1.75 per cent today at $0.56 at the time of publication.