Tabcorp massive fine exposes flaws in responsible gambling practices

Lea Hogg August 26, 2024

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Tabcorp massive fine exposes flaws in responsible gambling practices

Australia’s largest betting agency, Tabcorp, has been hit with a record $4.6 million fine after a Victorian Gambling and Casino Control Commission (VGCCC) investigation found significant breaches of responsible gambling regulations. These violations occurred between August 2020 and February 2023, highlighting serious shortcomings in Tabcorp’s adherence to its betting licence and responsible gambling code.

The VGCCC investigation revealed multiple instances where Tabcorp failed to meet its harm minimisation obligations. One notable case involved a customer who lost $135,000 in a single month. Despite these alarming betting patterns, a Tabcorp account manager contacted the customer under the guise of a “responsible gambling call” but ended up offering a deposit-match promotion of $2,000 instead of providing support or advice to help manage their gambling. The VGCCC’s chair, Fran Thorn, criticized this as a clear indication that Tabcorp was not taking its responsible gambling policies seriously and was instead prioritizing revenue over customer welfare.

Regulatory bodies play crucial role

Other breaches included sending marketing materials to a customer six times after they had opted out and failing to properly train employees on how to minimize gambling-related harm. Thorn emphasized that the $4.6 million fine—the largest ever imposed on Tabcorp by the VGCCC—reflects the seriousness of these violations and sends a strong message to the gambling industry about the importance of adhering to responsible gambling practices.

While Tabcorp cooperated with the investigation, the company acknowledged that its harm minimisation measures at the time fell short of both community expectations and regulatory requirements. In response to the fine, Tabcorp has undertaken significant steps to improve its operations, including restructuring its safer gambling team to increase customer interventions. The VGCCC will continue to monitor Tabcorp closely to ensure that its new initiatives effectively address the issues identified in the investigation.

This situation serves as a reminder of the critical role that regulatory bodies play in protecting consumers and holding companies accountable for their actions, particularly in industries where the potential for harm is high. Tabcorp’s case reflects the need for stringent enforcement of responsible gambling measures and the importance of prioritizing customer safety over profits.

This article is based on reporting by the Australian Associated Press.