Tab fined $4m for sending thousands of text messages

An Australian wagering company has been penalised $4m after spamming its VIP customers with texts and WhatsApp messages.

Australia’s largest gambling company Tabcorp has been slapped with a $4,003,270 fine after sending its VIP customers thousands of messages over text and WhatsApp without giving people a way to unsubscribe.

The Australian Communications and Media Authority (ACMA) found the waging company sent 2598 SMS and WhatsApp messages to its VIP customers in the three months between February 1 and May 1, 2024.

ACMA also found that 3148 SMS and WhatsApp messages did not contain adequate sender information across the same period, and 11 SMS messages were sent without consent between February 15 and April 29, 2024.

TAB has been hit with a $4m fine Picture: NewsWire / Nikki Short

While these messages were sent to VIP customers, ACMA said there was a difference between them and traditional “high rollers”.

ACMA said customers receiving these messages may not have the same means to deal with significant losses.

ACMA authority member Samantha Yorke said the breaches were deeply concerning as they involved noncompliance by a large and established gambling provider that targeted VIP program customers.

“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program,” she said.

“These programs often involve personalised messages offering incentives such as bonus bets, deposit matching, rebates and offers of tickets to sporting and other events.

“The gambling industry needs to understand that spam laws apply to all direct marketing — whether it’s generic campaigns or personalised messages.”

ACMA said TAB did not allow its VIPs an easy option to unsubscribe. NewsWire / John Appleyard

The spamming occurred before chief executive Gill McLachlan joined the business.

In a statement to NewsWire, Tabcorp acknowledged the ACMA’s findings.

“Tabcorp is remediating and significantly improving our processes, systems and overall compliance pursuant to an enforceable undertaking, a TAB spokesperson said.

“Tabcorp assisted the ACMA throughout the investigation and will continue to work closely with the regulator to ensure ongoing improved compliance.”

Under the Spam Act 2003, businesses must have consent before sending marketing

messages.

But customers who are sent messages with consent must have a way of unsubscribing should they no longer want to receive the communications.

“When people make choices to unsubscribe from a service they must be able to do so easily and their decisions must be respected by companies,” Ms Yorke said.

TAB has also entered into a three-year court-enforceable undertaking, which includes an independent review of its direct marketing systems, quarterly audits of its VIP direct marketing, staff training, and regular reporting to the ACMA.

Originally published as Tab fined $4m for sending thousands of text messages