Tabcorp receives $5 million fine in Victoria

• Industry News
• 26. 08. 2024.
• Nikola Lasica

The largest Australian gambling operator, Tabcorp, has recently hit the headlines after receiving a fine from the Victorian Gambling and Casino Control Commission (VGCCC).

This is the largest-ever financial penalty imposed by the regulator against Tabcorp. According to the official statement, the prominent racing and betting company has repeatedly breached the state’s gambling code between 2020 and 2023.

Penalty leads to share price drop

Following the VGCCC investigation, Tabcorp was issued a hefty $5.02 million fine. The regulator’s decision was made public, affecting Tabcorp’s share price, which dropped by 3.5% to $0.60 on Friday last week.

The investigation discovered multiple breaches of the responsible gambling safeguards set by the regulator. This includes calling a player who lost around $150,000 within a month. The customer in question later received a bonus of over $2,000, which enabled them to continue gambling.

According to Victoria’s gambling authority, the inquiry revealed a pattern of irresponsible gambling practices by Tabcorp. On several occasions, the gambling-related risks weren’t taken seriously by the company.

Commenting on the regulator’s decision, Fran Thor, Commission Chair, explained that the breaches had shown Tabcorps’ systemic deficiencies and non-compliance with the its wagering and betting license, leading to serious and harmful consequences for customers.

The Australian gambling giant breached the rules on nine occasions. During the period covered by the investigation, the same customer received promotional materials six times despite opting out of the operator’s promotional activities.

Tabcorp needs to protect its customers

In a response, the Australian gambling business pointed out it had taken steps to increase the safety of its players. The company also restructured its Safer Gambling Team, focusing on improving the tools and options aimed at helping the customers feel protected. One of the new measures includes registering changes in the players’ behaviour and reacting as soon as these changes are noted.

Victorian Gambling and Casino Control Commission called on the operator to pay close attention to the well-being of its consumers and emphasized the importance of adhering to the Responsible Gambling Code of Conduct. Following these steps will help Tabcorp restore its reputation.

The regulator explained that Tabcorp must set up internal mechanisms to monitor, control, and implement compliance requirements. Above all, the company needs to ensure these mechanisms work and that customers will gamble in a safe and secure environment.

The regulatory body will continue to keep its eye on the company to make sure the operator adheres to the responsible gambling practices in an effective way.

Unfortunately, the latest penalty is the second one Tabcorp received in Australia in less than a year. In October 2023, it was slapped with a $16,000 fine in New South Wales for similar oversight. As the Australian gambling prevalence drops, the country’s regulators continue to impose strict rules to improve the safety of Aussie players.