Latest news with #spamlaws
ABC News
12 hours ago
- Business
- ABC News
Tabcorp fined $4 million for spamming customers with thousands of unlawful marketing messages
Australia's largest betting company Tabcorp has been fined more than $4 million for breaches of spam laws. The Australian Communications and Media Authority (ACMA), which governs spam laws, found that Tabcorp sent more than 5,700 unlawful marketing messages to customers of its VIP program. The VIP program is where eligible customers receive personalised and direct communications regarding Tabcorp services from Tabcorp personnel or an agent. Almost 3,000 SMS and WhatsApp messages were sent between February 1 and May 1 of 2024, without providing an option to unsubscribe from the messages, while 3,148 SMS and WhatsApp messages did not contain adequate sender information across the same period. Eleven SMS messages were sent without consent between February 15 and April 29, 2024. Under the Spam Act 2003, businesses must have consent before sending marketing messages. Messages sent with consent must also contain a working unsubscribe option and information about the sender. The ACMA said gambling marketing materials often involve personalised messages offering incentives, such as bonus bets, deposit matching, rebates and offers of tickets to sporting and other events. ACMA authority member Samantha Yorke said the breaches were deeply concerning as they involved non-compliance by a large and established gambling provider that targeted VIP program customers. "The gambling industry needs to understand that spam laws apply to all direct marketing — whether it's generic campaigns or personalised messages. "It is utterly unacceptable that Tabcorp did not have adequate spam compliance systems in place." VIPs aren't necessarily high-rollers, they can be anyone, including those who are not well off or experience significant losses. The $4,003,270 penalty against Tabcorp is one of the highest of its kind by the ACMA. The ABC understands that the fine has been paid and the penalty and legal costs will be recognised in this year's Tabcorp financial statements. Over the last 18 months, businesses have been penalised more than $16.9 million by the ACMA for spam breaches. The ABC understands a leadership change was triggered at Tabcorp following the ACMA investigation. "Under its new leadership team, Tabcorp is remediating and significantly improving our processes, systems and overall compliance pursuant to an enforceable undertaking" a spokesperson said in a statement. Tabcorp acknowledged the findings of the ACMA investigation and entered into a 3-year court-enforceable undertaking, which includes an independent review of its direct marketing systems, making improvements, running quarterly audits of its VIP direct marketing, training staff and reporting to the ACMA regularly. The ACMA said it would be watching closely to ensure Tabcorp meets its commitments and complies with the spam laws in future. Last year, the Victorian Gambling and Casino Control Commission fined Tabcorp $4.6 million after the company failed to adequately train staff in responsible gambling and sent direct marketing materials to a customer who had opted out.
ABC News
16-05-2025
- Business
- ABC News
PointsBet fined $500,000 after spamming customers with gambling ads
An online gambling provider has been fined $500,000 after a communications watchdog investigation found the company sent more than 800 messages that breached Australia's spam laws. The Australian Communications and Media Authority (ACMA) also found that PointsBet Australia breached laws related to BetStop — the National Self-Exclusion Register (NSER) — which allows people to exclude themselves from online gambling. BetStop was launched by the Albanese government in August 2023 to deliver a system that would protect gamblers who wanted to quit. The regulator found PointsBet sent 508 marketing messages between August and September 2023 to people on the self-exclusion register. Between September and November 2023, the online gambling provider sent 705 emails that contained a direct link to its betting products without including an unsubscribe function. The online gambling provider also sent 90 commercial texts without sender contact information. ACMA chair Nerida O'Loughlin said it was concerning that PointsBet customers who took steps to exclude themselves from online gambling were receiving gambling material. "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." The watchdog found no customers who had registered to be excluded from online gambling had placed bets with the company during the period investigated. A spokesperson for PointsBet said the investigation was launched after it self-reported a system failure in 2023 with the implementation of the BetStop system. "While the company does not necessarily agree with the basis of all the findings, nor the quantum of the penalty, PointsBet put forward, and the ACMA accepted, the enforceable undertakings pursuant to which the company will review and strengthen its compliance processes," a spokesperson said. "In terms of the spam findings, the emails 'containing a direct link to its betting products' were transactional, responsible gambling communications which included the PointsBet logo that unintentionally had an embedded link to our website. They were not intended to be commercial in nature. "In relation [to] BetStop, the ACMA found that none of the impacted customers were able to login or place a bet while registered on BetStop. Throughout the investigation, PointsBet was transparent and cooperative with ACMA." Monash University's Charles Livingstone, who is a gambling researcher, said the online wagering industry in Australia makes almost $9 billion annually, so a $500,000 penalty was a "drop in the bucket". Dr Livingstone added that those who had self excluded had taken steps to cancel their account, and create distance from gambling. Once you register for BetStop, licensed Australian online and phone gambling providers will not be able to: "It's really dangerous. It could lead them straight back into a dangerous habit that they have themselves decided they no longer want to participate in, and it shows gross irresponsibility." Australians lose more than $25 billion a year on legal forms of gambling, representing the largest per capita losses in the world, according to official government research. Dr Livingstone was critical of the federal government's "delayed response" to key recommendations from the You Win Some, You Lose More report stemming from a parliamentary inquiry into online gambling. Those recommendations included banning all advertising for online gambling and establishing a national regulator for online gambling. "The number one would be establishing a national regulator with effective power to stop these practices," Dr Livingstone said. "Financial penalties are so much water off a duck's back for many of these wagering operators, and they can absorb very significant financial penalties because they're making what we call an addiction surplus. "If we had a national regulator, we could enforce universal standards, and we would find much more compliance." The calls for a national regulator for gambling has been echoed by gambling reform advocate Tim Costello. "It's absolutely time for the prime minister and the Albanese government to respond to the [You Win Some, You Lose More] report they've had now nearly three years."
