Liquor & Gaming New South Wales (NSW) has hit O’Shea Bookmaking, the online bookmaker trading as TexBet, with a A$33,000 (£17,097) fine for ignoring a customer’s request to have their account closed.
Despite the fact the customer had attempted to close their account in May 2022 and opted out of receiving gambling adverts, TexBet continued to both market its services and accept new bets from the individual.
After a complaint was raised by the customer, Liquor & Gaming NSW investigated and found that TexBet had sent the customer four gambling adverts via text message.
The regulator also determined that the operator had accepted 75 new bets from the customer after they had attempted to shut their account.
As a result, O’Shea Bookmaking was sentenced in the Downing Centre Local Court on Wednesday 25 September for offences under New South Wales’ Betting and Racing Act 1998.
This marks the first time an online betting agency has been handed a fine for direct marketing without consent, as well as failing to close a betting account upon request, a rule that came into effect in 2019.
Jane Lin, Liquor & Gaming NSW executive director of regulatory operations, issued an update on the fine and shed light on the reasons behind why such laws were implemented in the first place.
“By engaging in this behaviour, TexBet has broken a law that was put in place to protect vulnerable people who are trying to exclude themselves from gambling,” Lin said.
“These laws were specifically developed to reduce the risk of gambling harm by requiring online betting businesses to make it simple for people experiencing harm to self-exclude and opt not to receive ads about gambling products.
“We know that direct marketing of gambling inducements can cause an increase in betting, betting expenditure and gambling-related harm.”
Lin continued by insisting that this ruling regarding TexBet should serve as a warning for other operators in the state.
She added: “Not only has TexBet broken the law, but it also placed this individual at greater risk of further gambling harm by sending them ads and accepting their bets after they specifically requested for their account to be closed and not to receive gambling ads.
“Online betting businesses that operate in NSW need to ensure they have robust systems in place to prevent direct advertising to people who have opted out. If they fail to abide by NSW gambling laws, they should expect to be caught and prosecuted.”
Gambling law remains a prominent talking point in Australia at the moment, with Prime Minister Anthony Albanese under increasing pressure to enforce a blanket ban on all gambling adverts, as requested by late Labor MP Peta Murphy.
However, Albanese seemingly favours a cap system that would see no more than two gambling adverts aired per hour on each channel until 10pm, alongside a total ban one hour either side of live sport.
A ban on gambling adverts around children’s programming and a digital blanket ban are also expected to come into effect soon.
The post TexBet handed fine by Australian regulator after failing to close customer account first appeared on EGR Intel.