VicBet Penalized AU$130,000 for Failing Customer Protection Standards

In a stern move highlighting the importance of responsible gambling practices, the Victorian Gambling and Casino Control Commission (VGCCC) has fined VicBet AU$130,000 (US$80,000) for two separate violations of its customer care obligations.

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Key Points:

VicBet fined AU$130,000 for breaches of customer protection laws.
Penalties linked to marketing to self-excluded customers and inducements to reopen closed accounts.

An investigation by the VGCCC uncovered that VicBet, a prominent Australian bookmaker, failed to adhere to its legal and social responsibilities on two occasions, resulting in significant financial penalties.

In the first incident, VicBet offered an AU$1,800 bonus bet to a customer who had requested to close their account in September 2022. This breach resulted in a fine of AU$50,000.

The second violation occurred in March 2020, when VicBet sent promotional materials to a customer who had self-excluded from the platform. For this infraction, the VGCCC levied an AU$80,000 penalty.

Commentary from VGCCC CEO

Annette Kimmitt, CEO of the VGCCC, expressed the gravity of these actions, stating:

Breaches can have serious consequences, not only in terms of punitive actions against the companies we catch out, but for people whose lives are affected by this behavior. It is an egregious betrayal of trust to send marketing materials to someone who has self-excluded or to offer inducements to keep accounts open after closure requests.
Annette Kimmitt

The VGCCC emphasized that these actions violated the Victorian Bookmakers’ Association Code of Conduct, which explicitly prohibits such practices.

Industry Implications

This case underscores the growing focus on ensuring operators, including Australian online casinos, uphold the highest standards of customer care and responsible gambling. The fine serves as a reminder that breaches of trust can result in substantial financial and reputational costs for gambling businesses.

The enforcement action comes as Annette Kimmitt approaches the end of her tenure as VGCCC CEO, with her resignation set for March 2025.

This penalty reflects the VGCCC’s commitment to maintaining stringent oversight of operators and protecting vulnerable individuals from exploitative practices within the gambling industry.