Tabcorp cops penalty after technical ‘bug’ allowed illegal in-play betting on tennis matches

Wagering giant Tabcorp has copped a penalty after it was found to have accepted 854 illegal in-play bets across 69 tennis matches last year.

Tabcorp is paying a penalty for inadvertently allowing in-play betting during dozens of tennis matches last year

A technical “bug” in Tabcorp’s betting systems that was not fixed for six months led to the bookmaker accepting hundreds of illegal in-play wagers on tennis matches, a government authority has found.

Tabcorp has paid a $262,920 penalty after an Australian Communications and Media Authority investigation found Tabcorp illegally accepted 854 in-play bets across 69 tennis matches between April and October 2023.

In-play betting, or wagering once sports matches or races begin, is banned in Australia.

Tabcorp admitted during the investigation that the breaches happened due to what it termed a technical ‘bug’ in its systems.

The error first occurred in April 2023, and it was not fixed until October that year.

Tabcorp said a ‘bug’ led to the in-play tennis bets being allowed for six months.

“Tabcorp is a major wagering operator, and it is concerning that it took some 6 months for the system error to be identified and fixed,” ACMA member Carolyn Lidgerwood said.

“In-play betting increases access to gambling opportunities and exacerbates the risks of gambling harm, as people can place bets with high frequency on multiple outcomes during sporting events.”

Tabcorp later voided the best and has told ACMA it now had controls in place to minimise the risk of online in-play bets being accepted.

The company, now under the leadership of new chief executive Gillon McLachlan after his appointment in June this year, was previously issued a formal warning by the ACMA in November 2021 for accepting in-play bets on a US college basketball game.

Separately, in August, Tabcorp was ordered to overhaul its operations and fined $4.6m afterwards it was found to have repeatedly breached Victoria’s gambling code.

The penalty imposed by the Victorian Gambling and Casino Control Commission is the largest one imposed on Tabcorp by the regulator, which found the wagering giant to have repeatedly breached the gambling code of conduct between August 2020 and February 2023.

New Tabcorp boss Gillon McLachlan said he will cut costs and fix the culture at the wagering giant.

The VGCCC said Tabcorp had 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 at the time.

Meanwhile, Tabcorp has been dealing with softening trading conditions, though the recent Melbourne Cup carnival at Melbourne’s Flemington racecourse – which included special promotions for Tabcorp customers at the venue – was considered a success given the increase in crowds.

Tabcorp’s TAB brand was also the winning slot holder in the recent $20m Everest race at Royal Randwick, won by Think About It.

Mr McLachlan told Tabcorp’s recent annual general meeting that his job was to further simplify the business to make it a “more cost-effective and agile company.”

“I’m focused on making Tabcorp a fitter organisation,” said Mr McLachlan. “That requires a reset of team, culture and cadence around the business.”

In August, Tabcorp booked a worse-than-expected $1.36bn loss for the year, amid continuing belt-tightening by customers and heavy writedowns on wagering assets in NSW and South Australia.