Tabcorp Holdings Limited (TAB) has been hit with a AU$4 million ($2.61 million) penalty after Australia’s communications watchdog found the company in breach of spam regulations due to unauthorized and non-compliant marketing messages sent to VIP customers.
An investigation by the Australian Communications and Media Authority (ACMA) uncovered that TAB sent over 5,700 SMS and WhatsApp messages to members of its VIP program between February and May 2024, many of which failed to comply with key provisions of the Spam Act 2003.
Specifically, 2,598 of the messages did not include an option to unsubscribe, while a further 3,148 lacked proper sender identification. Additionally, 11 messages were sent without prior customer consent. These breaches mark the first time ACMA has taken enforcement action against a VIP gambling program.
ACMA Authority Member Samantha Yorke said the violations were particularly concerning given the targeted nature of VIP marketing and the status of TAB as a major player in the Australian gambling landscape.
“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program,” Yorke said. “These programs often involve personalized messages offering incentives such as bonus bets, deposit matching, rebates and tickets to sporting events.”
Yorke also warned against misconceptions around the term “VIP”, noting that it does not necessarily refer to high-rollers. “These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses,” she said.
Under Australia’s spam laws, marketing messages require prior consent from recipients, along with clear sender information and an easy opt-out mechanism. ACMA emphasized that failure to meet these obligations—whether in broad campaigns or highly personalized communications—would not be tolerated.
TAB has now entered into a three-year, court-enforceable undertaking with the ACMA. Under the terms, the operator must undergo an independent review of its direct marketing practices, introduce system upgrades, conduct quarterly audits focused on its VIP marketing, train relevant staff, and provide regular updates to the authority.
“The ACMA will be watching closely to ensure TAB meets its commitments and complies with the spam laws in future,” Yorke added.
The penalty comes amid increased regulatory focus on consumer safeguards within the gambling industry. Over the past 18 months, the ACMA has issued more than AU$16.9 million ($11 million) in penalties related to spam law violations, signaling a firm stance on digital marketing compliance across all sectors, including gambling.
