Australian wagering company Tabcorp has been fined A$4.3 million ($2.89 million) by the Victorian Gambling and Casino Control Commission (VGCCC) for repeated violations of gambling harm prevention laws between 2020 and 2023. The VGCCC’s investigation uncovered nine instances of non-compliance with gambling harm minimization regulations, leading to the substantial penalty. Following the announcement, Tabcorp’s shares fell by as much as 3.5% to A$0.55, marking their lowest point since early August.
The VGCCC highlighted systemic operational deficiencies within Tabcorp, which resulted in significant harm to at least one customer. One of the key findings was that Tabcorp sent direct marketing materials to a customer on six occasions between October 2022 and February 2023, despite the customer having opted out of such communications. This breach of the customer’s preferences was one of several violations that contributed to the fine.
Fran Thorn, chair of the VGCCC, emphasized that Tabcorp’s breaches reflected a broader issue of non-compliance with the conditions of its license. The investigation also revealed that Tabcorp failed to provide adequate support to a customer displaying signs of distress and potential gambling harm, further underscoring the company’s shortcomings in safeguarding vulnerable individuals.
In response to the fine and the findings of the investigation, Tabcorp has acknowledged its failures and has taken steps to improve its approach to customer safety. The company has restructured its Safer Gambling Team, which has resulted in a greater number of customer interventions. Additionally, Tabcorp is implementing new technology to more rapidly detect changes in customer behavior, aiming to prevent gambling-related harm more effectively in the future.
Analysts at Jefferies noted that the fine was imposed due to misconduct, including the unauthorized sending of promotional materials to customers who had opted out and inadequate training for employees on mitigating gambling harm. These issues have prompted Tabcorp to reevaluate its internal processes and invest in better tools and training to ensure compliance with regulatory requirements.
Tabcorp’s commitment to improving its customer safety measures reflects the growing pressure on the gambling industry to address and prevent gambling-related harm. As the company works to rebuild trust and enhance its compliance efforts, it remains to be seen how these changes will impact its future operations and reputation in the industry.
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