Government regulations typically define how gambling websites operate, and stepping outside the boundaries of these laws will attract some penalties. That’s the case of VicBet at the moment—an online bookmaker based in Victoria facing fines for breaking customer protection laws.
The website has been fined AU$130,000 by the Victorian Gambling and Casino Control Commission (VGCCC) after investigations showed that it breached state regulations across two separate incidents.
According to the reports, VicBet offered a AU$1,800 bonus bet to a player who had requested that the betting platform close their account in September 2022.
Gambling laws in Victoria prohibit an operator from offering rewards to players as an incentive to continue playing with the website after they request for the account to be closed. The VGCCC fined VicBet AU$50,000 for this first offence.
The second regulatory breach occurred in March 2020, when the bookmaker sent promotional materials to a customer who had permanently self-excluded from its services. Sending promotional materials to individuals who have requested a self-exclusion is also illegal according to the VGCCC. The commission issued an AU$80,000 fine for this breach.
However, before the respective penalties, the VGCCC provided VicBet an opportunity to put up a legal defense and show cause as to why it should not receive disciplinary actions.
What the Authorities Have Said About VicBet’s Offenses?
Annette Kimmitt, CEO of the VGCCC, has termed VicBet’s behavior an egregious betrayal of trust, saying the website has failed to uphold the legal and social responsibilities it has to customers, such as minimizing any potential harm gambling can cause to bettors.
According to the VGCCC CEO, operators must honor the wishes of individuals who no longer desire to continue betting, either in the short or long term, by enforcing any preventive measures they opt for.
Below are the full comments from Annette Kimmitt on VicBet’s case:
“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. 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.
On these occasions, VicBet failed to live up to both its legal and social licences to operate, which include minimising the risk of harm to customers. Industry must respect the wishes of people who decide to have a break from, or quit, gambling. This means taking all reasonable steps to enforce harm prevention initiatives that customers commit themselves to, such as self-exclusion programs.”
Going Forward: What VicBet’s Case Means for Betting Companies in Australia?
Gambling can be a fun activity, whether you’re playing at an online casino or wagering on sports. However, it has the potential to cause harm to bettors, mostly relating to addictive behavior.
As a result, operators are expected to provide specific responsible gambling tools to help gamblers stay safe. These measures include self-exclusion and the option to close betting accounts permanently.
Gambling laws across many countries (including Australia) also expect iGaming brands to enforce these preventive measures when players request for them or if they notice any unhealthy wagering activities.
VicBet’s recent fines for regulatory breaches are a reminder of the responsibility operators have to protect players from the potential dangers associated with gambling. Betting websites in Victoria must now exercise extra caution to ensure they’re adhering to all ethical and legal guidelines to avoid the legal implications associated with breaking the law.
