Australian betting operator PointsBet has paid an AU$500,800 penalty after breaching e-marketing and gambling self-exclusion laws.
Investigations by the Australian Communications and Media Authority (ACMA) found that the operator sent more than 800 messages that breached Australia’s spam laws.
PointsBet also contravened laws relating to BetStop, the National Self-Exclusion Register (NSER), by delaying closing accounts of customers who had registered and sending marketing messages to self-excluded persons.
According to the ACMA, PointsBet sent 705 emails containing a direct link to its betting products without including an unsubscribe function between September and November 2023.
The emails were mischaracterised by PointsBet as ‘non-commercial’ despite promoting their services, making them subject to the spam rules.
PointsBet also sent seven marketing emails without recipient consent, and 90 commercial texts that did not have sender contact information.
The NSER investigation found that PointsBet sent 508 marketing messages to self-excluded individuals in August and September 2023. Under the NSER laws, people registered with the NSER must not be sent marketing materials from a licensed wagering service.
ACMA chair Nerida O’Loughlin said there are no excuses for gambling companies that fail to understand their legal obligations given the risks to people experiencing gambling harms.
“It is deeply concerning that these failures have impacted PointsBet’s customers, some of whom had taken proactive steps to exclude themselves from online wagering,” O’Loughlin said. “People signing up to the NSER are taking positive steps to remove online gambling from their lives. Their decision must not be compromised by companies like PointsBet.
“Wagering providers must also appropriately identify where messages promote or advertise their services and ensure that those messages comply with the rules, including the obligation to promote the NSER.”
The ACMA found that no excluded customers were able to place bets with PointsBet during the period investigated. It accepted comprehensive court-enforceable undertakings from PointsBet to review its compliance with spam and NSER laws, actioning any recommended improvements and providing regular training for all relevant staff.
“This action should serve as a warning to all wagering providers that they must meet their legal obligations or face the consequences,” continued O’Loughlin. “We will closely monitor PointsBet’s compliance with its undertakings and with the spam and NSER laws.”
The imposition of a financial penalty was not available to the ACMA for the NSER breaches due to the complex and novel matters investigated. However, a failure to comply with an enforceable undertaking can lead to court-ordered financial penalties.
This marks the first enforceable action announced under the NSER rules, and businesses have paid more than $14 million in spam penalties over the last 18 months.
Shares in PointsBet Holdings Ltd (ASX:PBH) closed unchanged at $1.10 per share in Sydney earlier Friday.