Tabcorp offers problem gambler more money during welfare visit

Gambling giant Tabcorp has been fined $4.6 million by Victoria’s gaming regulator over a remarkable incident in which its own systems identified a problem gambler and a Tabcorp employee called to check on him – only to then offer him more incentives to keep gambling.

The Victorian Gaming and Casino Commission detailed the breach while announcing what amounts to a record fine imposed by the regulator for a series of violations between 2020 and 2023.

In October 2022, Tabcorp’s systems alerted staff to a potential gambling problem at a customer:

“Significant increase in losses and turnover over the last 3 months. 12 million losses $160k, 1 million losses $135k. Staking seems consistent although active most days recently with high betting volume. I recommend calling if there hasn’t been any recently.”

A Tabcorp staff member then contacted the customer, who had opted out of receiving direct marketing from Tabcorp, on 26 October:

“I called (the client) and left a voicemail for him to get back to me. The betting on the account has increased dramatically over the last two months. An RG registration is required and additional account information is needed.”

However, when staff spoke to the customer, the topic turned to incentives for the customer to continue playing, with Tabcorp offering a $2,000 deposit match to bet on horse racing:

“The amount will be deposited into your account in a few minutes and off you go. It will be activated on your next deposit,” the staff member told the customer. “Take a look at the form. I’ll do the same… I’m in Flemington for four days.”

Tabcorp subsequently admitted to the regulator that “the value of the wellness check was compromised by the promotional offer made to the customer at the end of the call. Tabcorp notes that this offer should not have been made.”

Six days later, on November 2, Tabcorp noted:

“Customers have increased their betting and spending since June, with losses reaching $171,000 and frequent betting sessions on a weekly basis. 12 million losses represent $186,000, so the majority of activity and losses have occurred since June. Unable to locate open source information. RG verification required to assess loss tolerance and increased time spent betting. Accessibility and source of wealth should also be considered.”

Despite this, Tabcorp continued to offer the customer Australian Open tickets, a $1,000 “bonus bet in lieu of Australian Open tickets” and a further $2,000 matching deposit in February 2023. The customer closed the account in May 2023.

The regulator found it “extremely reprehensible that the account manager decided to make a responsible gambling call on 26 October 2022 and then use that call as an opportunity to offer the customer an incentive to gamble. This undermines the purpose of the call and demonstrates a mindset that is inconsistent with what the principles and policies of responsible gambling are intended to achieve. Furthermore, even leaving aside this extremely reprehensible conduct, the phone call failed to adequately investigate the customer’s sources of wealth. Nor did it adequately explore responsible gambling strategies with the customer.”

However, the regulator determined that the breach was “of medium magnitude” and fined Tabcorp only half the full amount it could have fined the company.