Australian wagering operator Tabcorp Holdings has been fined AU$4 million for spamming its VIP customers.

The fine from the Australian Communications and Media Authority (ACMA) follows an investigation which found that TAB sent more than 5,700 marketing messages to customers of its VIP program, all of which breached the country’s spam laws.

The communications included 3,148 SMS and WhatsApp messages that did not contain adequate sender information, and 11 SMS messages that were sent without consent between 15 February and 29 April 2024.

TAB also sent 2,598 SMS and WhatsApp messages to VIP customers between 1 February and 1 May 2024 that failed to include an option to unsubscribe.

“This is the first time the ACMA has investigated and found spam breaches in a gambling VIP program,” said ACMA member Samantha Yorke. “These programs often involve personalised messages offering incentives such as bonus bets, deposit matching, rebates and offers of tickets to sporting and other events.

“The gambling industry needs to understand that spam laws apply to all direct marketing—whether it’s generic campaigns or personalised messages,” Yorke added. “VIPs should not be confused with gambling ‘high-rollers’. These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses.”

Under Australia’s Spam Act 2003, businesses must have consent before sending marketing messages to customers, and these messages must contain a working unsubscribe option and information about the sender.

Following the ACMA investigation, TAB has entered into a three-year court-enforceable undertaking to conduct an independent review of its direct marketing systems and make any necessary improvements. The operator must also conduct quarterly audits of its VIP direct marketing and report back to the ACMA on a regular basis.

As a result of the breaches, Tabcorp Holdings will pay a penalty of $4,003,270 (approx. €2.2 million).

Shares in Tabcorp Holdings Ltd. (ASX:TAH) closed 1.37 per cent lower at $0.72 per share in Sydney Tuesday.