Flutter-owned online bookmaker Sportsbet must pay AU$3.7 million (€2.3 million) in fines and penalties for sending out promotional messages in marketing drive that included customers who had previously opted out of receiving such promotions.
An investigation carried out last year also found that many of the customers who had received the promotional messages had tried to unsubscribe but were unable to do so. The investigation discovered that around 150,000 text messages and emails were sent out during the campaign to those customers that tried to opt out.
Over 37,000 customers were affected, and received unwanted messages from January 2020 through to March 2021 despite repeated efforts to unsubscribe during that time.
The Australian Communications and Media Authority (ACMA) noted that the company had sent out 3,000 marketing texts during this period that did not include a way to unsubscribe. The ACMA also stated that even after it had received complaints and notified the company of issue, Sportsbet continued to spam customers with offers.
In a statement, ACMA chair Nerida O’Loughlin said:
“We received complaints from people stating they were experiencing gambling-related problems and were trying to manage the issue by unsubscribing from Sportsbet’s promotions.
Sportsbet’s failures in this matter had the real potential to contribute to financial and emotional harm to these people and their families.”
Speaking of the company’s failure to act swiftly she said:
“The Acma contacted Sportsbet on several occasions leading up to the investigation to let the gambling provider know it may have compliance problems and it failed to take adequate action.
Sportsbet is a large and sophisticated company which should have robust systems in place to comply with spam laws and protect the interests of its customers.”
The financial penalty includes a fine of $2.5 million (€1.6 million) for breaking Australian spam laws—the largest fine of its kind in history. The remainder of the $3.7 million will go to refunds the company has agreed to pay to those who placed bets after receiving the unwanted promotional messages.
Sportsbet must also appoint an independent person to oversee the refunds that are due to customers who received the marketing spam. This person will also monitor the company’s compliance with Australian anti-spam and gambling promotions laws and regulations.
A Sportsbet spokesperson said:
“Sportsbet accepts the Acma’s findings and apologises to customers who were affected by this issue. The non-compliance resulted from technical and systems failures that regrettably meant not all customer unsubscribe requests were actioned in a timely manner.”
The ACMA has issued over AU$3.4 million (€2.1 million) in fines over the last 18 months to companies that have broken anti-spam laws and regulations.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.