SBC News Tabcorp fined $4.7m for staff failures in Victoria

Tabcorp fined $4.7m for staff failures in Victoria

Tabcorp has been fined AU$ 4.6m (€2.7m) for “several instances of non-compliance” in its wagering business in the state of Victoria.

The fine was issued by the Victorian Gambling and Casino Control Commission (VGCCC), which deemed that Tabcorp had “repeatedly breached the Wagering and Betting Licence and Responsible Gambling Code of Conduct between August 2020 and February 2023.”

The Commission cited that Tabcorp failed to uphold its regulatory duties as staff had “inadequate training to responsibly deliver its products and services.”

Infringements saw Tabcorp staff promote direct marketing material to a customer who had opted out of receiving promotional offers. Furthermore, staff failed to provide appropriate support to a customer exhibiting observable signs of distress or indicators of potential gambling harm.

Disconcertingly, the Commission highlighted an instance where a Tabcorp account manager placed a ‘responsible gambling call’ to a customer whose betting patterns had been flagged as concerning. The call ended with the account manager communicating that a deposit match promotion of $2000 would be allocated to the customer’s account.

“This incident reflects a serious lack of commitment to responsible gambling practices within Tabcorp’s operations,” stated VGCCC Chair Fran Thorn.

“Such actions demonstrate that the licensee’s harm minimisation responsibilities were not taken seriously.”

In addition to the financial penalty, Tabcorp has been directed to undertake a comprehensive transformation programme to address these deficiencies.

The VGCCC has mandated that Tabcorp overhaul its internal systems, with a focus on ensuring that its operations comply with responsible gambling requirements.

Actions include retraining staff, improving support mechanisms for customers at risk of gambling harm, and reinforcing its compliance controls across its network.

Concerns have been raised as, in 2024, Tabcorp took exclusive control of the Wagering and Betting Licence for the State of Victoria.

The tender sees Tabcorp’s flagship TAB brand serve as the exclusive operator for retail wagering and betting in Victorian pubs for a period of 20 years, beginning in August 2024 until 2043.

The VGCCC will actively monitor Tabcorp’s progress, ensuring that the company meets its regulatory obligations and prioritises player safety going forward. While acknowledging Tabcorp’s cooperation during the investigation, the VGCCC made it clear that further breaches will not be tolerated and could result in more severe penalties.

“Tabcorp’s breaches reflect systemic operational deficiencies and non-compliance with the conditions of its licence, the consequences of which have included significant harm to a customer,” Chair Thorn concluded.

“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.”

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