Wagering giant Tabcorp has been hit with a record fine and issued directions to transform its operations, after extensive investigations uncovered multiple breaches and “systemic” problems.
The Victorian Gambling and Casino Control Commission (VGCCC) probed several instances of Tabcorp Wagering (Vic) Pty Ltd’s non-compliance with its regulatory obligations and opted for a $4.6 million fine, in relation to repeated breaches of the Wagering and Betting Licence and Responsible Gambling Code of Conduct, between August 2020 and February 2023.
“Tabcorp’s breaches reflect systemic operational deficiencies and non-compliance with the conditions of its licence, the consequences of which have included significant harm to a customer,” stated Commission Chair Fran Thorn.
“The hefty fine, the largest the Commission has ever issued to Tabcorp, is proportionate to the seriousness of the licensee’s misconduct. It sends a clear message to the gambling industry that this kind of behaviour is not acceptable and will not be tolerated.”
As a result of its enquiries, the Commission found Tabcorp:
- Between October 2022 and February 2023: sent direct marketing material to a customer 6 times, despite the customer having opted out of receiving promotional materials
- failed to provide appropriate support to a customer exhibiting observable signs of distress or indicators of potential gambling harm.
- failed to minimise the potential for gambling harm through inadequate training of employees to responsibly deliver its products and services
Australians can self-exclude for free from all licensed Australian online and phone wagering providers by registering with the National Self-Exclusion Register – BetStop.
The VGCCC cited an occasion where Tabcorp’s monitoring system identified a patron whose betting patterns had been flagged as potentially concerning. An account manager placed a ‘Responsible Gambling Call’ to the customer, but the call ended with the Tabcorp manager telling the person that $2000 would be allocated to the customer’s account, courtesy of a deposit match promotion.
The regulator points to such activity as indicative of a culture where harm minimisation obligations were not taken seriously.
“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,” says Thorn.
“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.”
Further breaches were identified, and to address these the VGCCC has directed Tabcorp to implement a transformation program to overhaul its operations, requiring it to focus on:
- harm minimisation and player safety protections, including complying with its Responsible Gambling Code of Conduct
- internal systems and controls to effectively manage its compliance requirements
- controls for effectively managing compliance with its obligations through its network of retail agents
The VGCCC will be actively monitoring Tabcorp to ensure transformation requirements are not only implemented quickly, but are effective in ensuring ongoing compliance.
“The directed transformation program is intended to future proof Tabcorp’s gambling operations to ensure it complies with the law,” added Thorn.
It was acknowledged that Tabcorp cooperated with investigations and has taken some steps to improve compliance, including acceptance that a deeper transformation is required. The company has committed to pursuing this in line with the Commission’s directions.
