Australia’s media watchdog has fined Tabcorp millions for breaches of anti-spamming laws after it sent thousands of text messages to VIP customers.
The Australian Communications and Media Authority (ACMA) penalised Tabcorp Holdings Limited (ASX:TAH) $4,003,270 after conducting an investigation that found the company had sent over 5,700 marketing messages to customers in its VIP program.
ACMA found that between 1 February and 1 May 2024, 2,598 SMS and WhatsApp messages were pushed to customers that did not provide an option to unsubscribe.
Another 3,148 messages during the same period did not contain adequate sender information, and between 15 February and 29 April some messages were sent without consent.
Eligible customers in Tabcorp’s VIP program receive personalised communications that frequently offer incentives around its services, such as rebates, bonus bets, deposit-matching and specials on tickets to sporting and other events.
The Spam Act 2003 stipulates that businesses must have consent before sending marketing messages, and that messages (sent with consent) must also contain information about the sender and an option to unsubscribe.
ACMA has published a statement of expectations to help businesses understand how to properly implement consent in e-marketing, and the Authority’s Samantha Yorke says the gambling industry must understand that spam laws apply to all direct marketing, whether personalised or generic campaigns.
This penalty to Tabcorp is one of the highest of its kind doled out by ACMA, and Yorke says it is particularly concerning, given they stem from the non-compliance of a large and established provider.
“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program.
“It is utterly unacceptable that TAB did not have adequate spam compliance systems in place.”
It’s understood Tabcorp has paid the fine, and the costs will be reflected in its financial statements for this year.
“VIPs should not be confused with gambling ‘high-rollers’,” added Yorke. “These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses.”
Tabcorp assisted ACMA with its investigation and says it will continue to work closely with the regulator “to ensure ongoing improved compliance”.
The company has also agreed to enter a three-year court-enforceable undertaking that will include an independent review of and improvements to its direct marketing systems, quarterly audits of its VIP direct marketing, more staff training, and regular reporting to ACMA.
“Under its new leadership team, Tabcorp is remediating and significantly improving our processes, systems and overall compliance pursuant to an enforceable undertaking,” said a spokesperson, via statement, declining to comment further.
ACMA notes it is currently a compliance priority to crack down on gambling safeguards and spam rules, reporting more than $16.9 million in fines issued for spam breaches over the past 18 months.
“The ACMA will be watching closely to ensure TAB meets its commitments and complies with the spam laws in future,” says Yorke.
