Tabcorp incurs $4.6m fine in Australia

Tabcorp, a prominent gambling and betting juggernaut in Australia, has been fined by the Victorian Gambling and Casino Control Commission over breaches of its license and gambling rules.

Tabcorp share price takes hit after RG failings

The company has been meted out a $4.6m because of an investigation by the VGCCC which found the operator to be at fault, and to have indeed breached certain aspects of its betting license and responsible gambling code over a three-year period. Tabcorp’s share price went down by 3.5% on Friday, to AU$0.55, on the news of the fine.

Between August 2020 and February 2023, VGCCC established several breaches of the company’s responsible gambling safeguards, including a call to a customer who had lost $135,000 within a month, only to be allocated a $2,000 bonus, allowing them to continue playing.

According to VGCCC, this was one of the instances that went to show that Tabcorp had a "culture" in which responsible gambling and risks associated with gambling were not taken seriously within the company. In a statement, Commission Chair Fran Thorn said:

"Tabcorp’s breaches reflect systemic operational deficiencies and non-compliance with the conditions of its license, the consequences of which have included significant harm to a customer."

Tabcorp is said to have breached responsible gambling rules on nine separate occasions over the surveyed period. A single customer was offered promotional materials on six occasions, even though they had opted out of gambling inducement, i.e. the promotional messages sent to player emails or their accounts.

Tabcorp to do better in terms of RG and its customers

In a statement to Reuters, a media outlet, Tabcorp assured the public that since the incidents had been found out and put under the microscope, the company had taken significant steps to improve customer safety and has undergone a restructuring of its Safer Gambling Team, which has already led to increased customer interventions whereby team members can help protect consumers better, such as register changes in consumer behavior.

The VGCCC has also outlined the steps the company should follow to restore its reputation. The watchdog has called on Tabcorp to observe the Responsible Gambling Code of Conduct and apply it unwaveringly.

Furthermore, the regulator said that the company must put in place internal systems and controls to monitor and apply compliance requirements, and not least – ensure that it is effectively managing its compliance "with its obligation through its network of retail agents."

For the VGCCC’s part, Thorn has confirmed that Tabcorp will continue to be monitored. Tabcorp would need to implement responsible gambling practices sustainably and effectively. Tabcorp was similarly fined by New South Wales last October, slapped with a small AU$15,000 penalty.

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