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Melbourne-based wagering giant Tabcorp Holdings (ASX: TAB) has been fined $4 million for sending thousands of spam messages to VIP clients in a breach of legislation that authorities have described as “deeply concerning”.
The fine was among $16.9 million that Australian businesses have been penalised for flouting spam rules in the past 18 months.
It also comes 10 months after Tabcorp was hit with a $4.6 million fine from the Victorian Gambling and Casino Control Commission for failing to minimise the potential for gambling harm due to inadequate staff training.
The latest investigation by the Australian Communications and Media Authority (ACMA) found that TAB sent 2,598 SMS and WhatsApp messages to customers between 1 February and 1 May 2024 without providing an option to unsubscribe from the messages.
The ACMA also found that 3,148 SMS and WhatsApp messages did not contain adequate sender information across the same period, and 11 SMS messages were sent without consent between 15 February and 29 April 2024.
The breaches have been described by ACMA member Samantha Yorke as deeply concerning as they “involved non-compliance by a large and established gambling provider that targeted VIP program customers”.
“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program,” says Yorke.
“These programs often involve personalised messages offering incentives such as bonus bets, deposit matching, rebates and offers of tickets to sporting and other events.
“The gambling industry needs to understand that spam laws apply to all direct marketing, whether it’s generic campaigns or personalised messages.”
Yorke says VIP clients should not be confused with wealthy “high-roller” gamblers.
“These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses,” she says.
“It is utterly unacceptable that TAB did not have adequate spam compliance systems in place.”
Under the Spam Act 2003, businesses must have consent before sending marketing messages, and these messages must also contain a working unsubscribe option and information about the sender.
“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,” says Yorke.
Along with the $4 million penalty, TAB has given a three-year court-enforceable undertaking to the ACMA to undertake an independent review of its direct marketing systems, making improvements, running quarterly audits of its VIP direct marketing and training staff.
“The ACMA will be watching closely to ensure TAB meets its commitments and complies with the spam laws in future,” says Yorke.
“Cracking down on gambling safeguards and spam rules are current compliance priorities for the ACMA. Over the last 18 months businesses have been penalised over $16.9 million for spam breaches.”
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