Australian gambling giant Tabcorp has been handed a record fine of AU$4.6 million ($3.08 million) after an investigation found ‘several instances of non-compliance with its regulatory obligations’.
The Victorian Gambling and Casino Control Commission (VGCCC) said that the breaches occurred between August 2020 and February 2023.
Speaking of the fine, VGCCC Chair Fran Thorn noted “The hefty fine, the largest the Commission has ever issued to Tabcorp, is proportionate to the seriousness of the licensee’s misconduct.”
The investigation found that the company had sent direct marketing material to a customer six times (from Oct. 2022-Feb. 2023) ‘despite the customer having opted out of receiving promotional materials’, that it ‘failed to minimize the potential for gambling harm through inadequate training of employees to responsibly deliver its products and services, and it ‘failed to provide appropriate customer support to a customer exhibiting observable signs of distress or indicators of potential gambling harm’.
The VGCCC highlighted one particular occasion in which a Tabcorp account manager placing a ‘Responsible Gambling Call’ to a flagged customer ended with the manager ‘communicating that a deposit match promotion of AU$2,000 ($1,340) would be allocated to the customer’s account’.
Speaking of the incident, Thorn noted that “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”.
Aside from the fine, the VGCCC is also mandating that Tabcorp focus on its harm minimization and player safety protections, internal systems and controls for compliance, and its compliance controls through its network of retail agents.
“The Commission has given Tabcorp clear instructions on what it must do to improve its operations and prioritize gambling harm minimization. The directed transformation program is intended to future-proof Tabcorp’s gambling operations to ensure it complies with the law,” indicated Thorn.
