Tabcorp Fined AU$4 Million for Breaching Spam Laws in VIP Customer Messaging Campaign

Tabcorp Holdings Limited (TAB), one of Australia’s most prominent gambling operators, has been handed a hefty AU$4 million fine (equivalent to US$2.61 million) after the nation’s communications watchdog determined the company had breached federal spam regulations during a VIP customer marketing campaign.

Following an in-depth investigation by the Australian Communications and Media Authority (ACMA), it was revealed that TAB dispatched more than 5,700 marketing messages via SMS and WhatsApp to members of its VIP program between February and May 2024, many of which failed to meet the legal standards outlined in the Spam Act 2003.

According to ACMA’s findings, 2,598 messages lacked an unsubscribe option, a critical requirement under the legislation. Furthermore, 3,148 messages did not include clear sender identification, and an additional 11 messages were sent without the recipients' prior consent—a foundational breach of Australian spam laws.

“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program,” ACMA Authority Member Samantha Yorke stated. She emphasized the significance of the case, particularly given the specialized targeting and high engagement levels typical in VIP gambling campaigns. “These programs often involve personalized messages offering incentives such as bonus bets, deposit matching, rebates and tickets to sporting events.”

Yorke went on to challenge widespread assumptions about the nature of VIP clients in the gambling industry. “These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses,” she said, highlighting the potential for harm among vulnerable individuals targeted by these campaigns.

Under Australia’s stringent spam laws, any form of direct marketing communication must be preceded by explicit consent, must clearly identify the sender, and must include a functional unsubscribe option. ACMA reiterated that these rules apply equally to mass marketing efforts and to individualized campaigns, such as those targeting high-value or high-frequency gamblers.

As a result of the investigation, TAB has entered into a three-year, court-enforceable undertaking with ACMA. The agreement requires the company to carry out a series of compliance measures, including:

• An independent review of its direct marketing procedures,

• System upgrades to better track consent and sender information,

• Quarterly audits with a focus on VIP communications,

• Staff training programs to reinforce compliance obligations, and

• Regular progress reports submitted to ACMA.

“The ACMA will be watching closely to ensure TAB meets its commitments and complies with the spam laws in future,” Yorke added, signaling continued regulatory scrutiny of digital communications within the gambling sector.

This enforcement action comes as part of a broader crackdown on unlawful marketing across industries. Over the past 18 months, ACMA has issued more than AU$16.9 million (US$11 million) in penalties for breaches of spam laws, with the gambling sector now firmly in the spotlight. The authority’s clear message: non-compliance with digital marketing laws—whether accidental or deliberate—will not be tolerated. 

By fLEXI tEAM