Tabcorp slapped with record A$1m fine in Victoria
Operator handed seven-figure fine over non-compliance with questioning relating to historical site outage
Tabcorp has been slapped with a A$1m fine by the Victorian Gambling and Casino Control Commission (VGCCC) over repeated failures to engage with the regulator.
In what is the largest fine ever imposed by the VGCCC, the decision was handed down after the regulator determined Tabcorp failed to comply with two separate information requests relating to a major system outage in 2020.
On 7 November 2020, Tabcorp suffered a major outage, with licence requirements stating that operators’ wagering and betting systems (WBS) should be available at all times.
The outage saw Tabcorp’s system unavailable for approximately 36 hours.
The regulator issued two directions after Tabcorp failed to voluntarily provide adequate information relating to the outage.
However, the VGCCC established that Tabcorp neglected to comply with the first direction because it failed to produce a response to the Commission’s questions.
The regulator said: “[Tabcorp] failed to produce a response that – in either form or substance – confirmed the WBS business continuity and disaster recovery arrangements established after the outage were ‘fit for purpose’ to deliver the ‘continuously available’ performance requirement.”
Tabcorp was found to have failed to comply with the second direction after it submitted its subsequent report four months after the deadline.
Tabcorp had challenged the licence requirement to have a WBS operational at all times, arguing the clause was “open to interpretation”.
The firm instead contended a WBS should be “operational for approximately 95% of the applicable opening hours” in a 12-month rolling period to allow for unplanned maintenance and extraordinary events.
However, the VGCCC retorted that there was no ambiguity in the regulations.
Fran Thorn, VGCCC chair, said: “We will not tolerate licensees that are not forthcoming and cooperative when the Commission investigates.
“The Commission had to use its compulsory powers and issue directions because Tabcorp did not provide the information we required about the business continuity and disaster recovery capability of its systems.
“It is Tabcorp’s failure to comply with these directions that has led to the fine announced today.
“All entities we regulate – no matter how big or small – have an obligation to be open and honest with the Commission and responsive to its lawfully issued directions. We will not tolerate attempts to frustrate our investigations,” the chair added.