ACMA Imposes Fine of $500,800 on PointsBet

The Australian Communications and Media Authority (ACMA) has imposed a fine of $500,800 on PointsBet Australia Pty Ltd for breaching the e-marketing and gambling self-exclusion laws.

Investigations by the Australian Communications and Media Authority (ACMA) found that the company sent more than 800 messages that breached Australia’s spam laws.

PointsBet also contravened laws relating to BetStop – the National Self-Exclusion Register (NSER), by delaying closing accounts of customers who had registered and sending marketing messages to self-excluded persons.

Between September and November 2023, PointsBet sent 705 emails containing a direct link to its betting products without including an unsubscribe function.

The emails were mischaracterised by PointsBet as “non-commercial” despite promoting their services, making them subject to the spam rules.

PointsBet also sent seven marketing emails without recipient consent and 90 commercial texts that did not have sender contact information.

The NSER investigation found PointsBet sent 508 marketing messages to self-excluded individuals in August and September 2023. Under the NSER laws, people registered with the NSER must not be sent marketing materials from a licensed wagering service.

ACMA Chair Nerida O’Loughlin said there are no excuses for gambling companies that fail to understand their legal obligations given the risks to people experiencing gambling harms.

“It is deeply concerning that these failures have impacted PointsBet’s customers, some of whom had taken proactive steps to exclude themselves from online wagering,“ Ms O’Loughlin said.

“People signing up to the NSER are taking positive steps to remove online gambling from their lives. Their decision must not be compromised by companies like PointsBet.

“Wagering providers must also appropriately identify where messages promote or advertise their services and ensure that those messages comply with the rules, including the obligation to promote the NSER.”

The ACMA found that no excluded customers were able to place bets with PointsBet during the period investigated. The ACMA has accepted comprehensive court-enforceable undertakings from PointsBet committing it to reviews into its compliance with spam and NSER laws, actioning any recommended improvements and providing regular training for all relevant staff.

“This action should serve as a warning to all wagering providers that they must meet their legal obligations or face the consequences. We will closely monitor PointsBet’s compliance with its undertakings and with the spam and NSER laws,” Ms O’Loughlin said.

The imposition of a financial penalty was not available to the ACMA for the NSER breaches due to the complex and novel matters investigated. However, a failure to comply with an enforceable undertaking can lead to court-ordered financial penalties.

Compliance with interactive gambling safeguards and misleading spam messages are both current compliance priorities for the ACMA. This is the first enforceable action announced under the NSER rules, and businesses have paid more than $14 million in spam penalties over the last 18 months.