The Australian Communications and Media Authority (ACMA) has fined racing and wagering giant Tabcorp just over AU$4 million (US$2.6 million) for spamming its VIP customers.
According to information from the regulator, Tabcorp sent more than 5,700 marketing messages to customers of its VIP program in breach of Australia’s spam laws.
The communications included 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, plus 3,148 SMS and WhatsApp messages that did not contain adequate sender information across the same period. Eleven SMS messages were sent without consent between 15 February and 29 April 2024.
Authority Member Samantha Yorke said the breaches 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,” Yorke said. “These programs often involve personalized 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 personalized 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.”
The ACMA noted that, under the Spam Act 2003, businesses must have consent before sending marketing messages, while 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,” Yorke added.
Alongside its AU$4 million fine, Tabcorp has entered into a three-year court-enforceable undertaking that 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.
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