Issued by state regulator Liquor & Gaming New South Wales (NSW), the fine relates to a case with a customer who tried to close their TexBet account.
The player in question requested that their betting account be closed in May 2022. They also opted out of receiving gambling adverts from the operator.
However, TexBet sent the customer four gambling ads via text message and accepted 75 bets from them after the date of the request. The player then filed a complaint with Liquor & Gaming NSW as a result.
The case was heard at the Downing Centre Local Court last week, where TexBet was found guilty and fined. Incidentally, this was the first time an online betting agency has been fined in NSW for direct marketing without consent and failing to close an account on request.
Rules and regulations surrounding such activity came into effect in the state in 2019.
NSW regulator blasts TexBet for putting player at risk
Liquor & Gaming NSW executive director of regulatory operations, Jane Lin, welcomed last week’s ruling. She said the case represented a serious breach of gaming law and that TexBet put the player at risk.
“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. “We know that direct marketing of gambling inducements can cause an increase in betting, betting expenditure and gambling-related harm.
“These laws were specifically developed to reduce the risk of gambling harm. They require online betting businesses to make it simple for people experiencing harm to self-exclude and opt not to receive ads about gambling products.
“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. They must prevent direct advertising to people who have opted out.”
Clamping down on rule-breakers in NSW
Confirmation of the fine comes after the regulator recently completed a host of compliance checks across the state.
Inspectors visited 528 hotels and clubs offering gaming machines across NSW throughout both July and August to ensure venues were complying with new requirements enforced in September.
Establishing a responsible gaming officer and gambling incident register are among the new rules. Venues have also been required to remove any gambling signage from near ATMs.
New rules were included in an updated version of the state’s 2016 Gaming and Liquor Administration legislation, which came into effect on 1 September. Liquor & Gaming NSW said some 93% are complying with new requirements.
Original article: https://igamingbusiness.com/legal-compliance/texbet-fined-nsw-advertising-account-closure-breaches/
