PointsBet Faces Penalties for Messaging Violations
PointsBet has recently been hit with a substantial fine of AU$500,800 (approximately US$321,706) following infractions related to marketing practices and self-exclusion protocols, as mandated by the Australian Communications and Media Authority (ACMA).
The regulator uncovered that PointsBet dispatched over 800 marketing communications that failed to adhere to Australia’s spam regulations. Additionally, the company was found in violation of the BetStop national self-exclusion register (NSER) rules.
Between September and November 2023, PointsBet sent 705 emails promoting its betting services without including an option for recipients to unsubscribe. These emails were controversially labeled as non-commercial by PointsBet, which the ACMA contested, leading to their classification under spam laws.
Moreover, regulatory scrutiny revealed that PointsBet transmitted seven marketing emails without acquiring consent from recipients and sent out 90 promotional texts that lacked sender identification.
Breaching Self-Exclusion Laws
The ACMA highlighted troubling findings concerning PointsBet’s outreach to individuals who had opted for self-exclusion from gambling activities. An investigation into NSER indicated that the company directed 508 marketing messages to self-excluded consumers during August and September 2023.
Under Australian regulations, any licensed wagering entity is strictly prohibited from sending marketing materials to individuals enrolled in the NSER. PointsBet’s actions were deemed a clear violation of these standards.
ACMA’s Chair, Nerida O’Loughlin, condemned PointsBet’s negligence, stating that there is no justification for gambling operators to misinterpret their responsibilities toward consumers. She stressed the significance of respecting the choices made by individuals who wish to distance themselves from online betting.
“Those who opt into the NSER are actively taking steps to eliminate online gambling from their lives. Such decisions should never be undermined by companies like PointsBet,” O’Loughlin remarked. She emphasized that wagering providers must accurately identify messages promoting or touting their services and ensure compliance with all regulatory requirements, including those surrounding the NSER.
Commitment to Compliance
In conclusion, the ACMA noted that no excluded individuals were able to place bets with PointsBet during the investigatory timeframe, as their NSER enrollment prevented gambling with any licensed provider in Australia.
The ACMA has accepted legally binding commitments from PointsBet to undertake comprehensive reviews of its compliance with spam and NSER laws. This includes implementing recommended improvements and conducting regular training for employees to prevent future violations.
“This situation serves as a reminder to all wagering providers regarding the necessity of adhering to legal standards—failure to do so will result in consequences,” O’Loughlin stated. She added that ACMA will vigilantly supervise PointsBet’s adherence to its commitments and relevant laws moving forward.