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PointsBet reprimanded by Aus regulator over anti-consumer practices

PointsBet Australia Pty Ltd has been hit with an AUD$501k (£242k) fine by the Aus media regulator over advertising law breaches.

The Australian Communications and Media Authority (ACMA) launched an investigation into the online gambling provider, which uncovered “more than 800 messages” as part of what the regulator said was a spam advertisement campaign in contravention of e-marketing laws.

Details around the investigation revealed that in the period between September and November 2023, PointsBet had sent 705 emails with a direct link to its gambling products without the option to unsubscribe from such messaging.

PointsBet was found at fault for mischaracterising the emails as ‘non-commercial’, when in fact the communications did promote the company’s services. There were also seven marketing emails sent without recipients’ consent.

In addition, the ACMA found PointsBet to also be infringing regulations around Australia’s national self-exclusion register (NSER), BetStop. Customers have reported that they’ve experienced delays with account closures, still receiving marketing messages even after opting in to self-exclude. 

These messages totalled around 508 pieces of marketing communication sent to at-risk individuals between August and September 2023. 

ACMA Chair Nerida O’Loughlin, said: “It is deeply concerning that these failures have impacted PointsBet’s customers, some of whom had taken proactive steps to exclude themselves from online wagering.

“People signing up to the NSER are taking positive steps to remove online gambling from their lives. Their decision must not be compromised by companies like PointsBet.

“Wagering providers must also appropriately identify where messages promote or advertise their services and ensure that those messages comply with the rules, including the obligation to promote the NSER.” 

However, it is important to note that the financial penalty only refers to the breach of spam regulation and not self-exclusion rules, as this falls outside the remit of the ACMA.

O’Loughlin concluded: “This action should serve as a warning to all wagering providers that they must meet their legal obligations or face the consequences. We will closely monitor PointsBet’s compliance with its undertakings and with the spam and NSER laws.”

PointsBet is currently running a tender process for the acquisition of the company, with Australian challenger betting brand Betr recently emerging as the preferred candidate.

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