Tabcorp Holdings Limited has been fined a sum of AU$4,003,270 after the Australian Communications and Media Authority found them in breach of national spam laws. The watchdog’s investigation uncovered that TAB sent over 5,700 promotional SMS and WhatsApp messages to VIP customers between February and May this year, without securing proper consent or including essential information. 

The breaches included 598 messages without an unsubscribe option, 3,148 messages lacking adequate sender details, and 11 messages sent without prior consent. This is the first time the ACMA has penalised a gambling company specifically over spam-related misconduct within its VIP marketing programme.

Vulnerable Customers Targeted

ACMA Authority Member Samantha Yorke described the violations as alarming, given the targeted nature of the promotions and the profile of the recipients. “It is utterly unacceptable that TAB did not have adequate spam compliance systems in place,” said Yorke. 

She emphasised that VIP gamblers might also be suffering heavy losses. “Being classified as a VIP does not necessarily equate to financial resilience. These programmes may include customers who are incurring serious losses.”

Legal Obligations and Industry Scrutiny

Under the Spam Act 2003, all commercial marketing messages must be sent with clear user consent. They are also legally required to include sender identification and a functioning option for recipients to unsubscribe. TAB’s failure to comply with these regulations has placed the brand under intense scrutiny. 

In response to the investigation, the brand has signed a three-year undertaking, including commitments to external reviews, regular internal audits, and enhanced staff training. ACMA said it will keep monitoring Tab’s conduct closely to maintain compliance.

Wider Industry Crackdown

This latest enforcement action adds to a growing list of penalties from the ACMA, with over AU$16.9 million in fines issued for spam law breaches in the past 18 months alone. The regulator continues its crack down on non-compliant direct marketing practices within sectors associated with potential harm like gambling. 

However, the gambling industry’s spotlight is not limited to spam regulations. Last month, the Australian Transaction Reports and Analysis Centre (AUSTRAC), mandated Ville Resort Casino and Mindil Beach Casino Resort to appoint external auditors for assessment of anti-money laundering and counter-terrorism financing compliance. The ACMA’s action against TAB serves as a clear reminder to companies operating in high-risk sectors that regulatory compliance is not optional. Therefore, targeted marketing must be conducted responsibly when vulnerable consumers are involved.