Regulatory Body Imposes Hefty Fine on Betfair for VIP Promotions Lapses and Shortcomings
Betfair Fined AUD 871,660 for Irresponsible Marketing Towards VIP Customers
The Australian Communications and Media Authority (ACMA) has issued a penalty of AUD 871,660 (approximately USD 563,650) to Betfair Pty Limited, operating as Betfair in Australia, for breaching Australia's spam laws.
Betfair sent a total of 148 unsolicited promotional messages via emails and text messages between March and December 2024 to VIP customers who either had not given consent or had explicitly withdrawn their consent to receive marketing communications. Six of these messages lacked a mandatory unsubscribe option, which is a breach of the Australia Spam Act.
The promotional content included inducements such as deposit bonuses and complimentary event tickets, aimed at encouraging continued betting from high-value players already active on the platform. ACMA highlighted that membership in VIP programs does not imply that those customers are financially secure or able to afford gambling losses. Therefore, targeting them with unsolicited marketing is "incredibly irresponsible" and "non-compliant."
ACMA Member Samantha Yorke emphasized Betfair's failure to maintain responsible gambling standards, particularly by removing customers' ability to opt-out of promotions and violating consent requirements.
Beyond the financial penalty, Betfair agreed to a two-year court-enforceable undertaking to overhaul its marketing practices. This includes conducting an independent review of messaging systems, implementing staff training on spam compliance, performing quarterly internal audits, and regularly reporting to ACMA.
This enforcement action forms part of ACMA's broader crackdown on unlawful marketing practices in the gambling sector, signaling that VIP programs are not exempt from compliance with spam laws.
Welcome bonuses are considered predatory and are not allowed. Bonuses can only be sent if registered users explicitly request them. Yorke emphasized that sending promotional gambling messages to customers without consent or an opt-out option is both irresponsible and non-compliant.
This is the second recent ACMA enforcement action concerning VIP customers in the gambling sector. The image credit for this article is from ACMA. It's important to note that VIP programs are designed to attract and retain customers actively, not necessarily to indicate that these customers are rich or able to afford to spend more than their means.
ACMA has no patience for such offenses related to gambling protocols. ACMA Member Samantha Yorke confirmed that remedial action by the company had already been taken.
[1] Australian Communications and Media Authority. (2024). ACMA issues $871,660 penalty to Betfair Pty Ltd for breaching spam laws. Retrieved from https://www.acma.gov.au/the-acma/media-centre/media-releases/acma-issues-871660-penalty-betfair-pty-ltd-breaching-spam-laws [2] Australian Communications and Media Authority. (2024). ACMA takes action against Betfair Pty Ltd for breaching spam laws. Retrieved from https://www.acma.gov.au/the-acma/media-centre/media-releases/acma-takes-action-against-betfair-pty-ltd-breaching-spam-laws [3] Australian Communications and Media Authority. (2024). ACMA issues court-enforceable undertaking to Betfair Pty Ltd to address spam law breaches. Retrieved from https://www.acma.gov.au/the-acma/media-centre/media-releases/acma-issues-court-enforceable-undertaking-betfair-pty-ltd-address-spam-law-breaches
- Unsolicited gambling promotions, such as the deposit bonuses and event tickets offered to VIP customers, can be part of concerning gambling-trends, according to ACMA, since these messages were sent without consent or an opt-out option, which is non-compliant and irresponsible.
- The casino-and-gambling industry, including VIP programs, must adhere to Australia's spam laws, as demonstrated by the ACMA's recent enforcement action against Betfair, in which they issued a penalty for promoting gambling without explicit consent or an unsubscribe option, emphasizing the importance of responsible gambling practices.
