It’s a decision that has the Australian online gambling industry reeling. Tabcorp, one of the country’s largest betting operators, has just been hit with a colossal fine of more than AUD 4 million. The culprit: sending out massive marketing messages to its VIP customers without respecting the most basic rules on consent and unsubscribing.
Who is Tabcorp and why is everyone talking about it?
Australian online gaming giant Tabcorp has just been fined by the Australian Communications and Media Authority (ACMA) for offences relating to its targeted marketing campaigns. But how could this giant flinch? And why is the case causing a stir beyond its borders?
The investigation, which did not spare Tabcorp
Between 1 February and 1 May 2024, Tabcorp sent 2,598 messages (SMS and WhatsApp) to its VIP players without offering compulsory unsubscription. Taking advantage of this silence on the part of the players, the company even failed to correctly identify the sender in more than 3,000 other messages. In addition, 11 SMS messages were sent without consent.
Which law has been flouted?
This behaviour is in direct contravention of the Spam Act 2003, which imposes three basic rules:
- Explicit consent from the recipient,
- Clear instructions to unsubscribe,
- Clear identification of the sender.
Tabcorp has breached each of these obligations, and has not been spared. The penalty is clear: A$4,003,270, or approximately €2.25 million. A severe wake-up call for Tabcorp, whose image is in jeopardy.
Samantha Yorke, ACMA:
“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program. The gambling industry needs to understand that spam laws apply to all direct marketing—whether it’s generic campaigns or personalised messages. 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.”
His message is clear: even the smallest VIP players deserve strict protection against abusive marketing practices.
A three-year commitment: towards new standards
Tabcorp has not only received a warning shot in the arm: the company has made a three-year commitment to review and modernise its marketing validation procedures, with close monitoring by the ACMA . These reforms are essential to avoid a repeat offence… and a potential new fine of the same calibre.
So what’s going to change now?
- Increased monitoring: the ACMA will ensure that the new procedures are complied with at all times.
- Redesigned marketing: each VIP message will now have to include unsubscription and identification.
- Immediate repercussions: a new offence could trigger a huge penalty, potentially equal to that imposed today.
Tabcorp has emerged from this affair diminished, not only financially, but also in terms of reputation. This record penalty encourages us to rethink the marketing-argument relationship in the gaming sector. More than a penalty, it is a turning point towards responsible and transparent communication, a requirement that has become unavoidable.