Summary
- The ACMA has imposed a fine on Betfair for sending 148 emails and texts to VIP clients.
- The regulator has criticized the actions as both reckless and in clear violation of compliance.
- Betfair is now required to thoroughly reassess its marketing strategies through an independent review and pay a substantial fine.
The Australian Communications and Media Authority (ACMA) has hit Betfair Pty Limited, trading as Betfair in Australia, with a hefty penalty. Recognized as one of the country’s most esteemed brands, Betfair has been fined $871,660 for breaching advertising regulations by sending unsolicited promotional messages to VIP clients.
ACMA calls out Betfair’s action as both non-compliant and irresponsible
ACMA member Samantha Yorke has delivered a scathing critique of violations concerning gambling protocols. She condemned these lapses as grossly irresponsible and non-compliant, emphasizing that the regulator has zero tolerance for such infractions. Sending promotional gambling messages without customers' consent or providing them with no option to opt-out is not only incredibly reckless but a clear breach of compliance, Yorke stated emphatically. She noted that VIP programs are typically crafted to engage and retain clients, but they don’t necessarily indicate that these individuals are wealthy or capable of spending beyond their means. The regulator discussed 148 emails and text messages directed at VIP customers between March and December 2024. These violations stemmed from targeting customers who had either failed to provide explicit permission for such promotions or had already revoked their consent. In six instances, the messages failed to offer an opt-out option. Australia may have one of the most gambling-inclined populations globally, but it also upholds some of the strictest regulations in place. Initially, bonuses are prohibited unless registered users specifically request these tailored promotions. Welcome bonuses, in particular, are banned due to their predatory nature. This marks the second ACMA enforcement action targeting VIP customers in the gambling sector recently. Providers are on notice to align their compliance systems, Yorke asserted, confirming that corrective measures had already been enacted by the company. Betfair has committed to a two-year court-enforced agreement to conduct an independent review of its marketing messages and ensure such offenses are not repeated.
