VGCCC Fines Tabcorp AU$4.6M for Compliance Violations

VGCCC Imposes Record AU$4.6M Fine on Tabcorp for Compliance Failures

The Victorian Gambling and Casino Control Commission (VGCCC) has made headlines with its latest enforcement action, levying a record AU$4.6 million fine against Tabcorp for significant compliance breaches.

The hefty penalty underscores the VGCCC’s commitment to enforcing responsible gambling practices and holding operators accountable for any lapses. Between August 2020 and February 2023, Tabcorp repeatedly violated its Wagering and Betting Licence and the Responsible Gambling Code of Conduct, with failures that had a direct impact on customer well-being.

These violations included sending marketing materials to a customer who had explicitly opted out, failing to properly train staff on gambling harm minimization, and, most alarmingly, offering a distressed customer exhibiting signs of potential gambling harm a deposit match promotion. The VGCCC deemed these actions as reflective of systemic operational deficiencies within Tabcorp’s processes.

VGCCC chair Fran Thorn emphasized the seriousness of these breaches, stating: “Tabcorp’s failures have resulted in significant harm to a customer, and this fine, the largest ever issued to Tabcorp, reflects the gravity of their misconduct. This serves as a clear warning to the entire gambling industry that such behavior will not be tolerated.”

Tabcorp’s Compliance Failures

The VGCCC’s investigation into Tabcorp revealed a series of failures in the company’s compliance mechanisms. Despite being a leading operator in Australia’s wagering and betting market, Tabcorp failed to adhere to the fundamental principles of responsible gambling.

One of the most egregious breaches involved a Tabcorp account manager, who, rather than addressing a customer’s troubling betting behavior, instead offered a AU$2,000 deposit match promotion during a call. This action was not only irresponsible but directly contradicted the company’s duty to minimize gambling harm.

In addition, Tabcorp’s repeated sending of marketing materials to a customer who had opted out further demonstrated a lack of proper oversight and respect for customer preferences. Such actions are clear violations of both the Wagering and Betting Licence and the Responsible Gambling Code of Conduct, designed to protect consumers from gambling-related harm.

VGCCC’s Response and Expectations

The VGCCC has mandated that Tabcorp undergo significant changes in its operations to address the issues uncovered during the investigation. The Commission has outlined a directed transformation program, which requires Tabcorp to implement comprehensive reforms aimed at preventing future compliance breaches.

Fran Thorn added: “The VGCCC has provided clear directives to Tabcorp on the necessary improvements. This transformation program is not just about rectifying past failures; it’s about ensuring that Tabcorp’s operations are future-proofed against such lapses. We will closely monitor their progress to ensure these changes are implemented swiftly and effectively.”

The AU$4.6 million fine against Tabcorp is a stark reminder of the importance of compliance in the gambling industry. The VGCCC’s decisive action highlights the regulatory body’s unwavering commitment to protecting consumers and maintaining the integrity of the wagering market. As Tabcorp works to implement the mandated changes, the industry will be watching closely, recognizing that failure to prioritize responsible gambling practices can result in severe penalties and long-lasting reputational damage.