Sportsbet has been fined $92,500 by the Northern Territory Racing and Wagering Commission (NTRWC), after the online gambling company sent 154 messages to customers who were self-excluded from the platform or had chosen to take a break from gambling.
Of the 154 messages delivered, 124 of the people who had received them were on breaks, and a further 30 had permanently excluded themselves.
The NTRWC opted out of handing down the maximum fine of $185,000, due to the licensee’s efforts in addressing the issue “quickly and responsibly”. In the end, it ruled on a penalty of 500 points, which equates to a $92,5000 fine. Sportsbet must pay by 17 July.
“In determining the appropriate disciplinary action to take, the commission has taken into account the serious nature of the conduct,” a commission statement read.
“It is imperative that marketing communications are not directed to individuals who have self-excluded or are taking a break from the use of online wagering services, as such actions risk undermining their efforts to manage gambling-related harm and may contribute to relapse.
“Moreover, doing so represents a failure to uphold the licensee’s ethical obligation to prioritise customer welfare over commercial interests.
“The reduction to 50 per cent of the maximum penalty reflects the commission’s recognition of the mitigating factors, including the licensee’s immediate action to rectify the situation, cooperation in self-reporting the incident, and the fact that the conduct was caused by human error rather than deliberate misconduct.
“The penalty is intended to reflect the seriousness of the violation, while also acknowledging the Licensee’s efforts to address the issue responsibly.”
The breach occurred due to human error, with SMS messages containing a survey link being sent to the intended 747 recipients as well as the 154 unintended recipients who had opted out due to being self-excluded or taking a break.
However, the error could have been much worse as the marketing team of Sportsbet identified the mistake before an additional 48,891 messages landed in the inbox of unintended recipients. The human error was put down as a result of a training period oversight.
“Sportsbet mistakenly sent a message to some customers that were self-excluded or on a break. These messages were sent due to human error,” said a Sportsbet spokesperson to B&T.
“Sportsbet became aware of the issue shortly after the messages were sent, and quickly took steps to notify the NTRWC and ensure no further unintended recipients were contacted.”
“Sportsbet accepts responsibility for the mistake and apologises that the impacted individuals received messages they should not have.”
