VGCCC fines bookmaker VicBet for breaching customer safety obligations

Jenny Ortiz January 16, 2025

SiGMA news

VicBet, an online bookmaker, has been fined AUD130,000 (€78,397) for failing to meet its customer care responsibilities. The Victorian Gambling and Casino Control Commission (VGCCC) announced the penalties, highlighting two breaches that undermined efforts to prevent gambling harm.

VGCCC CEO Annette Kimmitt AM stressed the harm caused by such violations. “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 behaviour.”

Violations uncovered in VGCCC investigation

The VGCCC’s inquiry into complaints against VicBet identified two specific failures. First, the bookmaker offered a customer an AUD1,800 (€1,085) bonus bet after they had requested the closure of their betting account in September 2022. This led to a fine of AUD50,000 (€30,152).

The second breach involved VicBet repeatedly sending promotional material to a customer who had permanently self-excluded from the platform in March 2020. For this, the company received a penalty of AUD80,000 (€48,244).

“It is an egregious betrayal of trust, for example, to continue to send marketing materials to a person who has self-excluded from a gambling venue or closed a betting account,” Kimmit said.

Under Victorian law, bookmakers are prohibited from offering bonuses, credits, or other incentives to encourage customers to keep accounts open after requesting closure. Additionally, sending marketing communications to self-excluded individuals contravenes the Victorian Bookmakers’ Association Code of Conduct.

“These breaches demonstrate that VicBet failed to live up to its legal and social licences to operate, which include minimising the risk of harm to customers,” Kimmitt said. She emphasised the industry’s responsibility to respect the decisions of individuals taking steps to address gambling-related issues.

Opportunity to respond

Before the penalties were finalised, the Victorian regulator said VicBet was invited to provide submissions through its legal representatives. The VGCCC reviewed these responses before determining the fines.

Kimmitt urged the gambling industry to prioritise harm prevention measures. “This means taking all reasonable steps to enforce harm prevention initiatives that customers commit themselves to, such as self-exclusion programs,” she said.

The VGCCC is an independent regulator dedicated to ensuring the integrity, safety, and fairness of Victoria’s gambling industry, reporting to the Victorian Parliament through the Minister for Casino, Gaming, and Liquor Regulation. Operating within a legislative framework set by the government, the VGCCC adheres to Ministerial Directions, determinations, and approvals that establish its regulatory functions and powers. Its objectives, functions, and powers are defined in the Victorian Gambling and Casino Control Commission Act 2011, with enforcement responsibilities extending to the Gambling Regulation Act 2003, Casino Control Act 1991, Casino Management Agreement Act 1993, and Racing Act 1958.

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