The sports betting brand has been hit with a minor penalty over failure to comply with customer protection standards in one particular case
The Liquor & Gaming NSW took issue with O’Shea Bookmaking, known to the wider audience as TexBet, its trade name, in one instance where the company had accepted bets from a player who was trying to close their account.
The case was viewed at Downing Center Local Court in late September, with TexBet accused of violating the Betting and Racing Act that governors the gambling industry in the Australian state.
Jane Lin, executive director of regulatory operations at Liquor & Gaming NSW, argued that TexBet had broken the law, a law that was designed to help protect consumers.
“These laws were specifically developed to reduce the risk of gambling harm by requiring online betting businesses to make it simple for people experiencing harm to self-exclude and opt not to receive ads about gambling products,” Lin continued.
Although the fine is small, and TexBet has expressed willingness to strengthen its consumer-protection measures, it is the first time an operator has been fined for failing to close a betting account.
Since 2019, when the law was introduced, operators have been on pins and needles to ensure that they comply with regulatory mandates. However, TexBet failed to do so in the case of one customer who did not want to receive gambling solicitations, such as advertisements and had asked the company to close their account.
A complaint dating to May 2022 argued that TexBet continued to send such offers despite the player opting out. Under the law in New South Wales, gambling promotions may only be sent to players who have opted in. Those who have requested not to receive such inducements must be automatically excluded, which was not the case in that player’s case.
According to Lin, TexBet broke the law by placing an individual at a greater risk of developing a gambling disorder or gambling-related problem. Lin issued a warning to other companies that may be failing to meet certain aspects of player protection laws, arguing that such offenders would be caught and prosecuted.
The fine comes a week after New South Wales said that most operators are complaint with the state’s new responsible gambling mandates. The penalty issued to TexBet, however, pales in comparison with the one bore by PlayUp Interactive, which was slapped with a $AU600,000 fine over marketing failures.
