Flutter Entertainment’s Australian branch, Sportsbet, has been hit with a substantial fine of $3.7 million Australian dollars for bombarding its clientele with unsolicited text messages and emails. This includes a record penalty of $2.5 million and an extra $1.2 million that Sportsbet will reimburse to its customers.
The Australian Communications and Media Authority (ACMA) scrutinized Sportsbet and discovered that they had dispatched over 150,000 marketing communications to more than 37,000 individuals who had attempted to decline receiving these messages. They also transmitted over 3,000 text messages without any opportunity to opt out.
These communications, sent between January 2020 and March 2021, urged individuals to place wagers or reminded them about upcoming horse races.
ACMA Chair Nerida O’Loughlin stated that the sheer volume of messages and the duration of Sportsbet’s continued practice was troubling, particularly considering the potential risks associated with gambling. She also mentioned receiving grievances from individuals grappling with gambling difficulties who were attempting to manage their situation by opting out of Sportsbet’s promotions.
The carelessness of Sportsbet in this situation could lead to financial and emotional damage to these people and their families.”
The ACMA also agreed to a three-year, legally binding agreement from Sportsbet under which the operator will name an impartial mediator to oversee a large-scale reimbursement program to give back funds to customers who lost money due to spam-related wagers. The ACMA stated this is expected to total around $1.2 million.
Sportsbet will also need to appoint an independent advisor to examine its procedures, policies, training, and systems, and put into practice the suggestions of the audit.
“Before the investigation, the ACMA had contacted Sportsbet on numerous occasions to inform the betting provider of possible compliance problems, but it failed to take suitable action,” said Mr. O’Loughlin.
“Sportsbet is a substantial and experienced company that should have strong systems in place to comply with spam laws and safeguard the interests of its customers. We will actively monitor Sportsbet’s compliance and its dedication to the ACMA.”
The record penalty notice comes as businesses have paid almost $3.4 million in infringement notices for breaking spam and telemarketing laws over the past 18 months.
The ACMA has also accepted 13 legally binding agreements and issued seven formal warnings to businesses in the same period.
In November of last year, the New South Wales Liquor & Gaming Authority levied a substantial $135,000 penalty on Sportsbet. The reason for this fine was the company’s use of advertisements that promoted gambling and specifically targeted individuals who had opted out of receiving promotional emails.
Between October 2020 and March 2021, Sportsbet sent a significant number of emails to customers who had explicitly requested not to receive marketing communications.
You ought to subscribe to the iGaming newsletter.