Australia's leading betting company, Tabcorp, has recently been penalized with a hefty fine of over $4 million for violating spam laws in the country.

The Australian Communications and Media Authority (ACMA) discovered that Tabcorp had sent more than 5,700 illegal marketing messages to customers enrolled in its VIP program.

The VIP program caters to eligible customers by providing personalized and direct communications about Tabcorp services from the company's personnel or an agent.

Between February 1 and May 1, 2024, Tabcorp sent nearly 3,000 SMS and WhatsApp messages without offering recipients the option to unsubscribe. Additionally, over 3,100 SMS and WhatsApp messages lacked adequate sender information during the same period.

Moreover, eleven SMS messages were sent without consent from February 15 to April 29, 2024, which is a direct violation of the Spam Act 2003 that mandates businesses to obtain consent before sending marketing messages.

ACMA authority member Samantha Yorke expressed deep concern over the breaches, emphasizing that spam laws apply to all forms of direct marketing, including personalized messages. She highlighted that it was unacceptable for Tabcorp, a prominent gambling provider, to lack proper spam compliance systems.

As a result of the violations, Tabcorp has been slapped with a penalty of $4,003,270, marking one of the highest fines imposed by the ACMA. The company has paid the fine, and the penalty along with legal costs will be reflected in its financial statements.

Following the ACMA investigation, Tabcorp underwent a leadership change and is now focused on enhancing its processes, systems, and overall compliance. The company has entered into a 3-year court-enforceable undertaking, which involves an independent review of its direct marketing systems, regular audits, staff training, and reporting to the ACMA.

The ACMA has committed to closely monitoring Tabcorp to ensure that the company upholds its commitments and complies with spam laws moving forward.