The Australian Communications and Media Authority (ACMA) has found that four wagering service providers, Buddybet, Ultrabet, VicBet, and Topbet, violated regulations designed to protect individuals registered with BetStop, the National Self-Exclusion Register (NSER).
How they breached the regulations
An investigation revealed that Buddybet failed to close accounts for self-excluded individuals and sent them marketing materials. The company has since exited the Australian market.
Ultrabet was found to have reopened an account for a person at the end of their self-exclusion period and allowed betting activity, in addition to sending marketing to another self-excluded individual. Ultrabet has provided a court-enforceable undertaking to review and improve its compliance systems.
VicBet and Topbet were each issued formal warnings after investigations found they had sent marketing materials to self-excluded individuals, contravening NSER marketing rules.
Under NSER regulations, wagering service providers must close accounts of self-excluded individuals promptly and are prohibited from sending them electronic marketing communications.
ACMA response
Carolyn Lidgerwood, an ACMA Authority member, emphasized the importance of compliance:
“Wagering providers should know their obligations under the rules and know that we are enforcing them. The rules about account closure must be complied with,” Lidgerwood said.
Carolyn Lidgerwood
“People on the NSER have made a conscious effort to exclude themselves from online gambling services. Sending gambling marketing messages to people who are trying to stop gambling is unacceptable. Betting services must have systems in place that respect the decisions of people to self-exclude, or face further consequences.”
Growing scrutiny of gambling ad spend
These breaches occur amid increasing scrutiny of gambling advertising in Australia.
A study from ACMA showed that, between May 2022 and April 2023, the gambling industry spent approximately $238.63 million on advertising across free-to-air television, metropolitan radio, and online platforms.
Metro TV gambling ad spots broadcast, by advertiser type and time of day
Regional TV gambling ad spots broadcast, by advertiser type and time of day
Metro radio gambling ad spots broadcast, by advertiser type and time of day
A significant portion of these advertisements aired during prime time, raising concerns about exposure to vulnerable audiences.
Online gambling providers take the largest slice of the pie, accounting for 64% of total gambling ad spend.
Share of total gambling ad spend, by advertiser type (%).
In response to public concern, the Australian government is contemplating stricter regulations on gambling advertising, including potential bans on digital ads and restrictions on television commercials surrounding sports broadcasts.
These considerations follow a parliamentary committee’s recommendation for a phased ban on online gambling advertisements within three years
The ACMA’s recent findings underscore the necessity for wagering service providers to adhere strictly to self-exclusion rules and for ongoing evaluation of gambling advertising practices to protect vulnerable individuals.