Tabcorp has been warned that a significant ‘transformation’ is required after the company was fined $4.6m over repeatedly breaching the Wagering and Betting Licence and Responsible Gambling Code of Conduct between August 2020 and February 2023.
The sanction comes from Australia’s Victorian Gambling and Casino Control Commission, which emphasised that the breaches reflected ‘systemic operational deficiencies and non-compliance with the conditions of its licence, the consequences caused significant harm to consumers.
VGCCC chair Fran Thorn stated: “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.”
The Commission’s findings included that Tabcorp:
- sent direct marketing material to a customer six times between October 2022 and February 2023, despite the customer having opted out of receiving promotional materials
- failed to minimise the potential for gambling harm through inadequate training of employees to responsibly deliver its products and services
- failed to provide appropriate support to a customer exhibiting observable signs of distress or indicators of potential gambling harm.
Thorn also outlined that a recorded safer gambling call was cited as evidence of a lack of commitment to responsible gambling policies and demonstrated a lack of concern for the customer’s wellbeing.
She said: “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.”
As a result of the breaches and their significance, Tabcorp has been directed to implement a transformation programme to overhaul its operations.
Tabcorp must 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.
Thorn added: “The Commission has given Tabcorp clear instructions on what it must do to improve its operations and prioritise gambling harm minimisation. The directed transformation programme is intended to future proof Tabcorp’s gambling operations to ensure it complies with the law.
“We will be actively monitoring to ensure that the transformation programme requirements are not only implemented quickly but are effective in ensuring ongoing compliance with the law.”
The Commission acknowledged Tabcorp had cooperated in these investigations and had taken some steps to improve its compliance with its regulatory obligations. It has accepted a deeper transformation is required and has committed to pursuing this in line with the Commission’s directions.
