Betting giant fined millions for 'VIP' spam splurge
The communications watchdog has fined betting giant Tabcorp $4 million for thousands of breaches of spam laws.
The Australian Communications and Media Authority found Tabcorp sent more than 2500 messages over text and WhatsApp to VIP customers between February and May 2024 without an option for recipients to unsubscribe.
The investigation also found a further 3148 messages in the same period were not sent with information about the sender, while 11 texts were sent without consent.
It's the first time the watchdog has found breaches of spam laws in gambling VIP programs.
VIP programs often contain personalised messages to members offering incentives such as bonus bets, rebates or tickets to sporting events.
The watchdog's Samantha Yorke said the breaches of the spam law were concerning.
"VIPs should not be confused with gambling 'high-rollers'," she said.
"These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses.
"It is utterly unacceptable that TAB did not have adequate spam compliance systems in place."
Under spam laws, messages must be sent with the option for customers to unsubscribe from the marketing material, with businesses also needing consent.
The betting giant has already paid the $4 million fine and has agreed to a three-year court undertaking.
In a statement, Tabcorp said it was "remediating and significantly improving" its processes, systems and overall compliance under a new leadership team.
"Tabcorp assisted the ACMA throughout the investigation and will continue to work closely with the regulator to ensure ongoing improved compliance," it reads.
It will be required to carry out an independent review of its marketing material, run staff training, as well as conduct audits every quarter of its VIP marketing program.
"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," Ms Yorke said.
"The ACMA will be watching closely to ensure TAB meets its commitments and complies with the spam laws in the future."
In the past 18 months, the watchdog has fined companies more than $16.9 million for breaches of spam laws.
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