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Australia Fines Tabcorp $4m For Sending Unsolicited Ad Campaign to VIP Customers

  • The Tabcorp case is the first time the ACMA “found spam breaches in a gambling VIP program”
  • Under the Spam Act, consent is required before businesses can send marketing messages
  • Tabcorp must also produce quarterly audits of its VIP direct marketing campaigns
TAB sign in Australia
Australia’s media watchdog hit Tabcorp Holdings with an AU$4m ($2.6m) fine for spamming its VIP customers. [Image: Shutterstock.com]

ACMA finally acts

The Australian Communications and Media Authority (ACMA) has hit Tabcorp Holdings with an AU$4m ($2.6m) fine for sending out an unsolicited digital ad campaign to its VIP customers. 

ACMA announced on X that it had fined Australia’s biggest sports and racing betting operator for violating the country’s spam regulations:

An ACMA probe uncovered that Tabcorp sent over 5,700 marketing messages to customers who were members of its VIP program. The sanction comes over a year after Tabcorp sent the regulation-breaking messages.

ACMA member Samantha Yorke stated the Tabcorp case was the first time the media watchdog “investigated and found spam breaches in a gambling VIP program.”

Tabcorp fails spam protocol

Yorke added that the VIP programs in question entailed “personalised messages offering incentives such as bonus bets, deposit matching, rebates and offers of tickets to sporting and other events.”

The trouble with the 3,148 SMS and WhatsApp messages from Tabcorp was that they did not contain acceptable sender information, some messages were sent without consent, and unsubscribe options were absent. 

Under Australia’s Spam Act, consent is required before businesses can send marketing messages to customers.

spam regulations apply to all direct marketing

Yorke spoke for ACMA in warning gambling operators that spam regulations apply to all direct marketing, whether the ads are generic or personalized.

The ACMA spokesperson also made it clear that “VIPs should not be confused with gambling ‘high-rollers.’” Yorke explained that some forms of VIP gambling programs “can involve customers who are not well off and are experiencing significant losses.”

Added conditions

In addition to the hefty fine, Tabcorp has agreed to a three-year court-enforceable requirement “to conduct an independent review of its direct marketing systems and make any necessary improvements.”

While reporting to ACMA “on a regular basis,” Tabcorp must also produce for scrutiny quarterly audits of its VIP direct marketing campaigns.

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