Registered online bookmaker VicBet has been penalized $130,000 for failing to uphold its customer care obligations on two occasions.
The Victorian Gambling and Casino Control Commission (VGCCC) CEO, Annette Kimmitt AM, announced the fine today, highlighting the serious harm that can result when gambling regulations are not followed.
“Breaches can have serious consequences, not only in terms of punitive actions against the companies we catch out, but for people whose lives are affected by this behavior,” Ms. Kimmitt stated.
She emphasized the betrayal of trust involved in continuing to send marketing materials to individuals who have self-excluded from gambling venues or closed their betting accounts.
VGCCC’s investigations into complaints about VicBet revealed two major breaches:
- VicBet offered a customer a $1,800 bonus bet after they requested their betting account be closed in September 2022. This violation led to a $50,000 fine.
- The bookmaker repeatedly sent promotional material to a customer who had permanently self-excluded from VicBet in March 2020, resulting in an $80,000 fine.
It is illegal for bookmakers to offer credit, vouchers, rewards, or other incentives to encourage account holders to keep their accounts open after requesting closure. Similarly, sending promotional materials to self-excluded customers violates the Victorian Bookmakers’ Association Code of Conduct.
“On these occasions, VicBet failed to live up to both its legal and social licenses to operate, which include minimizing the risk of harm to customers,” Ms. Kimmitt noted. “Industry must respect the wishes of people who decide to have a break from, or quit, gambling. This means taking all reasonable steps to enforce harm prevention initiatives that customers commit themselves to, such as self-exclusion programs.”
Before the determination was made, VicBet was given an opportunity to ‘show cause’ as to why disciplinary action should not be taken. Submissions from its legal representative were considered during this process.
