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ACMA Penalizes PointsBet with $500,000 Fine for Spamming Customers

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Betting company fined for breaching digital communication laws in Australia.

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Australian sportsbook and casino PointsBet has been found in breach of local gambling self-exclusion and spam regulations after sending hundreds of unsolicited promotional messages which clearly violate the country’s Spam Act of 2003.

The Australian Communications & Media Authority (ACMA) also found that the operator broke laws issued by BetStop, Australia’s self-exclusion register (NSER) which allows players to self-exclude if and when required.

The breach, involving hundreds of unsolicited emails and texts promoting betting offers, represents a clear violation of spam and gambling regulations. ACMA described the conduct as “unacceptable,” emphasizing the importance of consent and responsible marketing in the gambling sector.

While many Australians actively seek promotions like the latest Australian no deposit bonus codes to explore betting platforms without spending their own money, the PointsBet case serves as a reminder that even popular incentives must be delivered ethically. Regulators are tightening scrutiny to protect vulnerable users and uphold consumer rights.

An Unsolicited Breach

Upon further investigation it transpired that between August and November of 2023, the offending company in question shared over 800 promotional messages that violated the act. These included over 700 emails which didn’t offer the chance to unsubscribe, seven emails sent without recipient consent, and over 90 SMS messages that failed to include appropriate sender identification. Moreover, over 500 of these messages were directed at individuals who had already expressed their interest in self-exclusion via BetStop, contravening laws designed to protect vulnerable individuals.

The Regulatory Response

Nerida O’Loughlin, Chair and Agency Head of the ACMA expressed her concern over the breaches, pointing out the dire need for companies to respect the choices of any individuals seeking to distance themselves from gambling. In response, PointsBet has entered into a legally binding agreement with the Authority, committing to an independent audit in review of its compliance procedures, implementing the recommended improvements, as well as hosting regular training on self-exclusion obligations and distribution of spam for its staff.

Broader Implications

This enforcement forms part of wider efforts whereby regulatory bodies are holding offending companies completely accountable for their digital communication practices. Over the past couple of years, the AMCA has issued over AU$16 million in fines relating to incorrect use of telemarketing and spam practices, which have affected various industries beyond the gambling realm. This highlights the universal importance for compliance whenever digital communication is involved which safeguards the interests of consumers while maintaining public trust.

In Conclusion

The substantial penalty placed on PointsBet has served as a stark reminder of the critical consequences and the importance of complying with digital consumer protection and communication laws. As virtual marketing continues to grow and expand, companies must continue to prioritize ethical practices while adhering to regulations with the aim of safeguarding the interests of their consumers while upholding the integrity of the industry.

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