The Australian wagering firm, Sportsbet, has been slapped with a hefty $3.7 million penalty for sending unsolicited text messages and emails to patrons. This is a record fine for this kind of violation.
The firm was found to have sent over 150,000 marketing communications to 37,000 individuals who had attempted to opt out of receiving them. They also sent thousands of messages that didn’t even include an option to unsubscribe.
The Australian Communications and Media Authority (ACMA) investigated Sportsbet for sending these communications between 2020 and 2021. The messages encouraged individuals to place bets on horse races.
The ACMA Chair stated that this was a serious case due to the potential harm gambling can cause, particularly to individuals trying to manage their gambling behaviors. The penalty serves as a warning to other companies to adhere to the regulations and respect people’s privacy.
The blunder made by the sports wagering firm in this instance could severely harm these individuals and their families, both financially and emotionally.
The Australian Communications and Media Authority (ACMA) has also compelled Sportsbet to agree to a three-year court-imposed plan. This plan will have an impartial judge supervise a substantial compensation program to reimburse customers who lost funds due to spam wagers. The ACMA states this will likely cost around A$1.2 million.
Sportsbet will also be required to engage an independent expert to examine their procedures, regulations, training, and systems. They will then be obligated to implement modifications based on the expert’s recommendations.
“Prior to the inquiry, the ACMA communicated with Sportsbet on numerous occasions, alerting them to potential issues with their regulations, but they failed to take any action,” stated Mr. O’Loughlin.
“Sportsbet is a large and seasoned enterprise. They ought to have robust systems in place to comply with spam laws and safeguard their clientele. We will be closely monitoring Sportsbet to ensure they adhere to the regulations and fulfill their commitment to the ACMA.”
This record penalty signifies that in the past 18 months, businesses have paid nearly A$3.4 million in fines for violating spam and telemarketing laws.
The ACMA has also secured agreements from 13 businesses for court-enforced plans and has issued seven formal warnings to businesses within the same timeframe.
In the past year, the New South Wales Liquor and Gaming Authority levied a hefty fine on Sportsbet, a prominent betting company, for deceptive advertising practices. The penalty, amounting to $135,000, was imposed due to Sportsbet’s continued attempts to market their services to individuals who had explicitly requested to be removed from their email list.
During a period spanning from October 2020 to March 2021, Sportsbet persisted in sending promotional messages to customers who had opted out of receiving marketing materials.
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