Tabcorp Holdings Limited recently paid a significant penalty of $262,920 for engaging in illegal online in-play sports betting activities in Australia. This violation was uncovered following an investigation conducted by the Australian Communications and Media Authority (ACMA), which revealed that Tabcorp had accepted 854 in-play bets on 69 tennis matches between April and October 2023.
Under the Interactive Gambling Act 2001, online in-play betting, which involves placing wagers on ongoing sporting events, is strictly prohibited in Australia. ACMA member Carolyn Lidgerwood emphasized that the ban on this type of betting is crucial for safeguarding vulnerable individuals from the potential harms associated with excessive gambling.
Lidgerwood pointed out that in-play betting can intensify the risks of gambling-related harm by providing easy access to continuous betting opportunities during sports events. She noted a concerning trend of escalating online sports betting activities and stressed the importance of effective systems to prevent the acceptance of illegal in-play bets by all online wagering services.
During the investigation, Tabcorp attributed the breaches to a technical ‘bug’ within its systems, which went undetected from April to October 2023. Lidgerwood expressed unease over the six-month delay in identifying and rectifying the system error, particularly considering Tabcorp’s prominent position as a major player in the wagering industry.
Aside from the financial penalty, Tabcorp informed ACMA of the corrective measures implemented and outlined future steps aimed at minimizing the risk of unauthorized in-play bets being accepted. ACMA acknowledged that Tabcorp had promptly voided all affected bets to prevent any financial losses to consumers and ensure that the company did not benefit from the technical errors.
It is worth noting that this is not the first time Tabcorp has faced regulatory scrutiny for similar violations. In November 2021, the company received a formal warning from ACMA for accepting in-play bets on a college basketball game in the United States. These repeated infractions underscore the importance of strict adherence to gambling regulations to maintain the integrity of the industry and protect consumers.
The enforcement actions taken against Tabcorp serve as a reminder to all gambling operators of the critical need for robust compliance mechanisms to prevent unauthorized betting activities, especially in the rapidly evolving online betting landscape. ACMA’s continued vigilance in monitoring and enforcing gambling regulations is essential to uphold the integrity of the industry and ensure responsible gambling practices.
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