Regulatory Authority ACMA imposes hefty fine on Betfair due to VIP promotions issues and operational shortcomings
Betfair Fined AU$871,660 for Breaching Australia's Spam Act
The Australian Communications and Media Authority (ACMA) has issued a penalty of AU$871,660 to Betfair Pty Limited, the Australian arm of the global online betting company, for sending 148 unsolicited promotional emails and text messages to VIP customers between March and December 2024.
The breaches occurred because the targeted customers had not given explicit consent or had withdrawn it, and six instances of messaging were found without an opt-out option. This is the second recent ACMA enforcement action concerning VIP customers in the gambling sector.
ACMA Member Samantha Yorke has criticized the breaches, describing them as both irresponsible and non-compliant. She emphasized that VIP customers are not necessarily wealthy or able to afford losses, making unsolicited gambling promotions particularly problematic.
The messages targeted VIP program members with inducements such as account deposit offers and complimentary event tickets, a practice ACMA described as irresponsible and non-compliant. In response to the enforcement action, Betfair agreed to a two-year court-enforceable undertaking requiring them to conduct an independent review of their marketing practices, provide staff training, carry out quarterly audits, and regularly report to ACMA.
Australia has one of the most gambling-populous populations in the world, but it also has some of the most strictly regulated markets. Welcome bonuses are considered predatory and are not allowed. The regulator has made it clear that it has no patience for such offenses.
Bonuses are only allowed if registered users ask for tailored promotions. Sending promotional gambling messages without consent or an opt-out option is irresponsible and non-compliant, according to Yorke. The ACMA’s action sends a clear message to gambling operators about the need for robust compliance systems to protect customer rights in accordance with Australian law.
The penalty was issued due to Betfair's breach of advertising rules related to unsolicited promotional messages sent to VIP clients. The company has entered a two-year court-enforceable undertaking for an independent review of its marketing messages to prevent repeat offenses.
Yorke confirmed that providers need to have their compliance systems in order. The case centers on Betfair’s failure to obtain proper consent for electronic marketing communications to its VIP customers and failing to provide opt-out options, which breaches Australia’s established spam regulations designed to protect consumers from unsolicited marketing.
In conclusion, the ACMA's enforcement action against Betfair serves as a reminder to all gambling operators to ensure they are complying with Australian laws regarding electronic marketing communications, particularly when it comes to obtaining consent and providing opt-out options.
In the light of this enforcement action against Betfair, it's crucial for all gambling operators to be mindful of their marketing practices, ensuring they adhere to Australian laws regarding obtaining consent and providing opt-out options for electronic communications. Such irresponsible practices involving sports gambling promotions, as seen in this case, are liable to result in penalties and damage the reputation of gambling companies.
