Tabcorp has been hit with a multi-million-dollar fine for infringing Australia’s spam laws via its VIP program over a two-month period last year.
Tabcorp Holdings Limited (Tabcorp) has been penalised $4,003,270 for sending more than 5,700 marketing messages to customers of its VIP program in contravention of Australia’s spam laws.
An Australian Communications and Media Authority (ACMA) investigation found that TAB sent 2,598 SMS and WhatsApp messages to VIP 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.
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.
“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program. 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,” stated Yorke.
“VIPs should not be confused with gambling ‘high-rollers’. 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 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.
“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,” explained Yorke.
In addition to the fine, Tabcorp has entered into a three-year court-enforceable undertaking. This 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 will be watching closely to ensure TAB meets its commitments and complies with the spam laws in future,” stated 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 $16.9m for spam breaches. The ACMA has released a statement of expectations for all businesses engaged in telemarketing and e-marketing to help understand how to use consent properly.
This article was first published on Club Management’s sister publication, Australian Hotelier.