Tabcorp Faces Record Fine for Breaching Gambling Rules

Australia’s largest betting agency has been fined $4.6 million (US$3.1 million) and put on notice by a gambling watchdog after it was found breaching license and gambling rules.

An investigation by the Victorian Gambling and Casino Control Commission revealed that Tabcorp had repeatedly violated its betting license and responsible gambling code between August 2020 and February 2023.

One incident involved a Tabcorp account manager making a “responsible gambling call” to a customer whose betting patterns raised concerns after losing $135,000 (US$90,800) within a month due to a high volume of bets.

During the October 2022 call, the manager informed the customer that a $2000 (US$1346) deposit-match promotion would be applied to their account.

The commission chair, Fran Thorn, remarked that this incident highlighted a culture at Tabcorp that did not take its harm minimization obligations 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,” Thorn stated.

“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.”

Despite the customer requesting to opt-out of receiving promotional offers when reopening their account in August 2020, they were contacted six times between October 2022 and February 2023.

It wasn’t until May 2023 that the customer’s account was closed again.

Other breaches included failing to provide proper support to distressed customers showing signs of potential gambling harm and inadequately training staff to minimize harm.

While Tabcorp cooperated with the investigation, Thorn emphasized that the breaches showcased systemic operational deficiencies and non-compliance with license conditions, causing significant harm to a customer.

“The substantial fine, the largest ever issued to Tabcorp by the commission, aligns with the severity of the licensee’s misconduct,” she declared.

“It communicates a clear message to the gambling industry that such behavior is unacceptable and will not be tolerated.”

The $4.6 million fine was half of the maximum penalty the regulator could have imposed.

In December, Tabcorp made an upfront payment of $600 million (US$404 million) to the Victorian government for a 20-year extension to its exclusive wagering license.

Senior Victorian minister Danny Pearson underscored that the penalty signaled to Tabcorp’s leadership, under new CEO Gillon McLachlan, that such behavior would not be accepted.

“I doubt any company would be pleased about receiving a multimillion-dollar fine,” he noted.

Tabcorp has been instructed to rectify its actions, with the watchdog committed to actively overseeing the implementation and efficacy of a new program to revamp its operations.

In a statement, Tabcorp acknowledged the fine but did not indicate whether it would challenge the severity.

“The harm minimization measures in place at that time did not meet community or regulatory standards, nor the expectations of current management for the company and its staff,” the company acknowledged.

“Tabcorp has since taken substantial steps to enhance customer safety, including restructuring the safer gambling team, resulting in an increase in customer interventions.”