An investigation by Liquor & Gaming NSW revealed that on 14 December 2019, a former Tabcorp betting account holder received a gambling advertisement offering bonus bets from Tabcorp on his Instagram account through Instagram Stories. This was part of Tabcorp’s advertising campaign on 13 and 14 December via Instagram Stories.
Liquor & Gaming NSW also discovered that details of 900 NSW residents who had closed their Tabcorp accounts were shared with Instagram’s parent company Facebook for the advertising campaign. However, according to the NSW Betting and Racing Act, it is illegal to publish gambling ads that encourage participation in gambling or the opening of a betting account.
While Tabcorp claimed that this was a result of human error, Magistrate Erin Kennedy expressed concerns that some of the 900 individuals may have closed their accounts due to gambling problems. Therefore, she stated that these individuals should not have been exposed to the ads. Kennedy also emphasized that Tabcorp’s compliance history should not grant them any special treatment or reduced punishment.
The ruling serves as both a general deterrent and a specific deterrent to ensure Tabcorp’s compliance with state regulations in the future. As a penalty, Tabcorp was fined $18,000 and required to pay $12,276 in legal fees.
This ruling follows Tabcorp’s recent denial of reports suggesting a potential takeover bid involving private equity firms led by betting pioneer Matthew Tripp. Australian newspapers indicated that multiple private equity firms had approached Tripp, with one offering $9.0bn for the entire Tabcorp business, and another considering a $3.0bn bid for Tabcorp’s TAB betting division.
Last month, Tabcorp experienced a 5.7% decline in revenue for the first quarter of its financial year due to disruptions caused by the Covid-19 pandemic. While there was a 2.9% increase in wagering and media revenue, revenue for its lotteries and keno and gaming divisions decreased during the three months ending on 30 September.
