Tabcorp fined $4.6m by Victorian Gambling and Casino Control Commission

Gambling giant Tabcorp has received its largest ever fine from Victorian gambling regulators, just weeks after former AFL chief Gillon McLachlan stepped into the top job.

Gillon McLachlan took over as Tabcorp chief this month. Picture: Arsineh Houspian

Australia’s largest gambling company, Tabcorp, has been ordered to overhaul its operations and fined $4.6m after it was found to have repeatedly breached Victoria’s gambling code.

The penalty imposed by the Victorian Gambling and Casino Control Commission (VGCCC) is the largest one imposed on Tabcorp by the regulator and comes weeks after former AFL chief executive Gillon McLachlan took over the top job.

Tabcorp was found to have repeatedly breached the gambling code of conduct between August 2020 and February 2023, as it failed to adequately train staff in responsible gambling and sent direct marketing materials to a customer who had opted out.

“Tabcorp’s breaches reflect systemic operational deficiencies and noncompliance with the conditions of its licence, the consequences of which have included significant harm to a customer,” VGCCC chair Fran Thorn said.

“The hefty fine, the largest the commission has ever issued to Tabcorp, is proportionate to the seriousness of the licensee’s misconduct.

“It sends a clear message to the gambling industry that this kind of behaviour is not acceptable and will not be tolerated.”

On one occasion, a Tabcorp account manager placed a “responsible gambling call” to the customer flagged as a potential problem gambler and that call ended with a deposit match promotion of $2000 added to the customer’s account.

It also failed to provide appropriate support to a customer exhibiting observable signs of distress or indicators of potential gambling harm.

The regulator has ordered Tabcorp to improve its internal systems and controls, including through its network of retail agents, and harm minimisation and player safety protections.

Tabcorp in a statement said it acknowledged that its harm minimisation measures at the time did not meet community or regulatory expectations, nor did it meet the expectations that current management expects of the company and its people.

“Tabcorp has since taken significant steps to improve customer safety, including restructuring the “safer gambling team” which has led to an increase in customer interventions,” the company said.

“We are also introducing new technology to detect changes in customer behaviour faster so we can intervene sooner to protect customers from gambling harm.”

The VGCCC acknowledged Tabcorp had co-operated and taken steps to improve its compliance with its regulatory obligations. Ms Thorn said that it had given Tabcorp clear instructions on what it must do to improve its operations and prioritise gambling harm minimisation.

“The directed transformation program is intended to future proof Tabcorp’s gambling operations to ensure it complies with the law,” Ms Thorn said.

“We will be actively monitoring to ensure that the transformation program requirements are not only implemented quickly but are effective in ensuring ongoing compliance with the law.”

Separately, Tabcorp is dealing with softening trading conditions, as the cost of living discourages punters from placing bets as regularly.

Mr McLachlan, who took over as CEO on August 5, has vowed to accelerate and deliver on the growth opportunities. The company is undergoing a transformation following its split with The Lottery Corporation in 2022.

“It is a business undergoing a digital transformation journey searching for growth. I believe I understand racing and sport, and consumer spending as well, and so for me this is a great leadership challenge,” Mr McLachlan told The Autsralian in June.

I am very aware of the challenge of this role, and I embrace that. It is a big and diverse business with a lot of opportunities.”

Tabcorp fell 2.6 per cent to close at 56c on Friday.

Originally published as Tabcorp fined $4.6m by Victorian Gambling and Casino Control Commission