ACMA formally warns Tabcorp after it accepts illegal in-play bets
Australian operator found guilty of breaking regulations after sanctioning in-play bets on US college basketball
The Australian Communications and Media Authority (ACMA) has issued a formal warning to Tabcorp after the operator was found to have accepted illegal online in-play bets.
Following an investigation by the ACMA, it was established that Tabcorp had sanctioned 37 bets on a US college basketball game in direct contravention of Australian regulations.
Online in-play betting is prohibited under the Interactive Gambling Act 2001.
The warning marks the first time the ACMA has acted against an operator for a breach of online in-play betting regulations.
Tabcorp said it failed to close the betting market in time due to incorrect match information being provided by a third-party supplier, followed by an in-house technical error from the operator.
Tabcorp said that upon realising the mistake, it paid out on winning bets and refunded losing bets, although one was refunded only after the ACMA commenced its investigation.
The ACMA noted that in its settlement it had considered Tabcorp’s actions dealing with the illegal bets and its commitment to improve the processes and systems that led to the error.
The authority added there are alternative enforcement options including penalty fines for operators which fail to comply with the regulations.
Fiona Cameron, ACMA authority member, said: “We know that in-play betting, such as bets on the next point in a tennis match or the next ball in cricket, can pose a very high risk to problem gamblers.
“These rules have been in place for many years and Tabcorp has had more than enough time to put systems in place to ensure that in-play betting is not offered on local or international sports.
“The ACMA considered that the paying out of winning bets by Tabcorp was inappropriate and that all illegal bets should have been voided so that neither operators or punters benefit from prohibited activity,” she added.
Cameron went on to warn other operators in Australia to abide by the regulations or face investigations from the body.
She continued: “The industry is now on notice that it must have robust systems in place to prevent in-play bets and that the ACMA will investigate evidence of non-compliance with these important consumer safeguards.
“If we find breaches of the rules caused by genuine mistakes, in any enforcement response we will take into account whether an operator has voided rather than paid out illegal winning bets.”