Tabcorp, Australia’s largest online gambling operator, has been fined A$4.6 million (€2.8 million) by the Victorian Gambling and Casino Control Commission (VGCCC) for breaches of responsible gaming regulations in Victoria.
The VGCCC issued the fine and mandated operational changes after a detailed investigation uncovered several instances of non-compliance with regulatory requirements. This penalty is the largest ever levied against Tabcorp by the state’s gambling authority and was imposed for multiple violations of the Betting and Wagering Licence and Responsible Gaming Code of Conduct between August 2020 and February 2023.
Commission chair Fran Thorn said: “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.
“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 regulator acknowledged Tabcorp cooperated during the investigation and has taken steps to improve its regulatory compliance.
Despite the breaches, the VGCCC noted that Tabcorp had cooperated with the investigation and taken measures to enhance its compliance practices.
The investigation revealed that Tabcorp had sent direct marketing materials to a customer six times between October 2022 and February 2023, despite the customer’s explicit request not to receive them. Additionally, the company failed to mitigate gambling harm due to inadequate staff training and did not provide adequate support to a customer showing signs of gambling distress.
One specific incident highlighted by the regulator involved a “responsible gaming call” made by a Tabcorp customer service manager to a customer whose betting behavior had been flagged as concerning. The call concluded with the employee offering a $2,000 incentive to the customer’s account.
Thorn said: “This action is indicative of a culture in which the licence holder’s 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.
“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 investigation, Tabcorp is required to implement a comprehensive transformation program, including a review of its operations to rectify the breaches. The company must focus on minimizing harm and enhancing player protection, aligning more closely with the Responsible Gaming Code of Conduct. Additionally, Tabcorp will improve its internal systems and controls to better manage its compliance obligations.
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 program 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 program requirements are not only implemented quickly but are effective in ensuring ongoing compliance with the law.”
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