Australia’s largest wagering operator, Tabcorp, has been hit with one of the country’s biggest ever spam-related fines, ordered to pay more than $4 million for breaching marketing communication laws.
The Australian Communications and Media Authority (ACMA) found that Tabcorp sent thousands of unlawful messages as part of its VIP program, in what it described as an “utterly unacceptable” failure to comply with the Spam Act 2003.
Between February 1 and May 1, 2024, Tabcorp sent nearly 3,000 messages that offered no unsubscribe option, while 3,148 SMS and WhatsApp messages lacked sufficient sender information. Eleven messages were also sent without consent between February 15 and April 29, 2024. a clear breach of the requirement that businesses must have permission before sending direct marketing.
“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program,” said ACMA authority member Samantha Yorke. “It is utterly unacceptable that Tabcorp did not have adequate spam compliance systems in place”.
Yorke stressed that the gambling industry “needs to understand that spam laws apply to all direct marketing, whether it’s generic campaigns or personalised messages”.
The penalty, which Tabcorp has reportedly already paid, will be recognised in the company’s upcoming financial statements. As part of an enforceable undertaking with ACMA, Tabcorp must now conduct an independent review of its marketing systems, implement new processes, run quarterly audits, train staff and report to the regulator.
Tabcorp issued a statement acknowledging the breaches and outlining its response. “Under its new leadership team, Tabcorp is remediating and significantly improving our processes, systems and overall compliance pursuant to an enforceable undertaking,” a spokesperson for the betting company said in a statement.
“Tabcorp assisted the ACMA throughout the investigation and will continue to work closely with the regulator to ensure ongoing improved compliance.”
A Wider Pattern of Risk and Regulation
The fine comes amid growing concern over Tabcorp’s broader approach to marketing and inducements, especially in the absence of meaningful federal reform.
Independent Senator David Pocock just this week criticised the federal government for failing to implement the 31 recommendations of the 2023 Murphy Inquiry into gambling advertising.
“Research shows inducements have contributed enormously to children and young people believing that gambling is a risk-free and normal part of enjoying sport, which is the exact association we should be working to break,” Pocock said.
Pocock criticised Tabcorp’s strategy of using incentives to drive up profits as “unsurprising when you consider the government has so little urgency in implementing the 31 recommendations of the Murphy Review”.
Tabcorp has recently rolled out a new strategy to revitalise its retail footprint, particularly in pubs and clubs. That includes “happy hour”-style promotions, venue-exclusive offers and the trial of a live, in-play betting app in NSW venues – the first time digital in-play wagering has been legally permitted in Australia.
Public health expert Professor Samantha Thomas warned that inducements “create a perception that the gambling company is giving you something and that gambling has less risk or no risk attached to it”.
Despite pushback from advocacy groups and crossbenchers, reform remains stalled at the federal level. Labor’s proposed ad restrictions, including bans on gambling ads during live sport and a cap of two ads per hour, were shelved ahead of the 2025 election after reported lobbying from media companies, betting operators, and sporting codes.
Meanwhile, states like New South Wales have begun to act independently. The Minns government is phasing out gambling advertising on public transport, removing more than $30 million worth of ads from stations, trains, buses and ferries over the next year.
In the Crosshairs
Tabcorp’s broader shift back into physical venues has sparked criticism, particularly as the company plans to stop paying commission to underperforming venues. The Australian Hotels Association warned that around 650 smaller pubs could be hurt by the move. Tabcorp defended the changes, saying the impact would be “modest”, about $160 per week per venue, and that its new promotions would help them hit required thresholds.
CEO Gillon McLachlan remains bullish. “I believe this is the future of wagering,” he told investors during the recent Macquarie Australia Conference, announcing the changes. He championed Tabcorp’s in-play betting pilot as a way to “take the friction out” of gambling, declaring: “In an increasingly regulated world with a great partnership, we can think about changing structural economics and the way people think about retail”.
But critics argue that current regulations are no match for the evolving tactics of major gambling companies. “Australia’s infamous title as the biggest gambling losers in the world will only get worse without action,” said Alliance for Gambling Reform CEO Martin Thomas.
Industry Pushback: AANA Warns of Overreach
While regulators continue to crack down, industry leaders are pushing back. At the AANA RESET for Growth conference in Sydney last month, Australian Association of National Advertisers (AANA) CEO Josh Faulks issued a stern warning about the growing wave of regulatory scrutiny targeting sectors like gambling, alcohol, and food and beverage.
“This is no longer a theoretical threat. It’s real. Some bans are already happening,” Faulks told a packed room of marketers, media executives and agency leaders. “Collectively, these proposals will strip hundreds of millions of dollars out of our industry and cripple the ability of some brands to advertise their products.”
Faulks called on advertisers to be proactive and united in defending their right to market responsibly, saying the AANA is working to shape a “regulatory framework that ensures our businesses and our industry can thrive”.
He urged marketers to push back forcefully and strategically against regulatory proposals that threaten to undermine business confidence and growth.
A Sector Under Siege
Tabcorp is far from alone in facing regulatory scrutiny. A class action lawsuit is currently underway against Sportsbet, alleging that its “Fast Code” service enabled illegal in-play betting via phone, an attempt, lawyers say, to sidestep consumer protection laws.
The industry is also under pressure from AUSTRAC, which is suing Entain, the parent of Ladbrokes and Neds, for alleged breaches of anti-money laundering laws.
Despite this, gambling ads continue to dominate Australian media. A 2024 survey by Bastion for B&T found that 61.19 per cent of Australians recalled seeing a gambling ad in the past month. TV (84.26 per cent) and social media (53.70 per cent) were the top channels. SportsBet, Ladbrokes, TAB and Bet365 were the most recognised brands.
Despite the prominence, only 24.65 per cent of survey participants believed a gambling ad ban would work. Still, 61.47 per cent said gambling brands should not advertise around sport, and 57.79 per cent opposed sponsorships of teams, athletes and events.
As the fines add up, more than $16.9 million in spam penalties over the last 18 months across businesses, the question remains: will federal reform ever catch up to the pace of industry change?
For now, Tabcorp’s $4 million fine serves as a warning shot, but whether it prompts genuine change in the sector is far from certain.
