Australian Communications and Media Authority (ACMA) has issued a new and stiff penalty against Betfair Pty Limited, operating as Betfair in Australia, and representing one of the best-known and most respected brands in the country.
The penalty, which amounts to $871,660, has been issued for the operator’s breach of advertising rules that had to do with the company sending out unsolicited promotional messages to VIP clients.
ACMA calls out Betfair’s action as both non-compliant and irresponsible
ACMA Member Samantha Yorke has criticized the breaches of gambling protocols, calling them both irresponsible and non-compliant, and highlighting the fact that the regulator had no patience for such offenses.
"Sending promotional gambling messages to these customers without consent or with no option to opt-out is incredibly irresponsible in addition to being non-compliant," Yorke explained.
She said that VIP programs are generally designed to attract and retain customers actively, and not necessarily mean that these customers are rich or able to afford to spend more than their means.
The regulator spoke about 148 emails and text messages that were sent to VIP customers between March 2024 and December 2024. The breaches arose from the fact that the customers targeted had either not given their explicit consent to be targeted by such promotional materials or had withdrawn it.
The regulator found six instances of such messaging that did not offer an option to opt out of receiving these messages in the first place. Australia has one of the most gambling-populous populations in the world, but it also has some of the most strictly regulated markets.
To start off with, bonuses are not allowed unless registered users ask the gambling companies to send them such tailored promotions. Welcome bonuses, though, are off the table, as they are viewed as predatory.
"This is the second recent ACMA enforcement action concerning VIP customers in the gambling sector. Providers are on notice that they need to have their compliance systems in order," Yorke said, and confirmed that remedial action on the part of the company had already been taken.
Betfair has entered a two-year court-enforceable undertaking that will see it conduct an independent review of its marketing messages and ensure that repeat offenses do not take place.
