ACMA Defends Strong Action Against Sportsbet in Gambling Case

UPDATE: Australia’s communications regulator, the Australian Communications and Media Authority (ACMA), has firmly rejected claims of softened enforcement in the Sportsbet case, following significant public scrutiny. This development comes just days after it was revealed that Sportsbet challenged a 2022 enforcement decision and pressured the regulator to alter its public announcement regarding the case.

The ACMA confirmed it issued a record AUD 2.5 million (approximately $1.7 million) fine to Sportsbet for violating spam communication regulations by sending marketing texts and emails to individuals who had attempted to unsubscribe. This breach impacted tens of thousands of Australians, raising concerns about consumer protection.

Officials from the ACMA stated that their compliance and enforcement activities are critical in preventing unlawful conduct and protecting consumers. In a statement, they emphasized their commitment to deterring future violations, noting that in the fiscal year 2024-25, they issued infringement notices totaling more than AUD 13.5 million across various companies.

“The ACMA will continue to take strong, proportionate action to ensure companies meet their legal obligations,” the regulator said.

Amid rising tensions, the ACMA’s actions have come under scrutiny, particularly concerning a separate case involving the Commonwealth Bank of Australia (CBA). A recent ABC report revealed that CBA lobbied the ACMA to delay its enforcement announcement until after the bank’s annual general meeting, sparking accusations of regulatory favoritism.

Former Supreme Court judge Anthony Whealy, now chair of the Centre for Public Integrity, criticized the delay, stating it was “quite wrong.” Shareholders and analysts echoed this sentiment, questioning whether the ACMA is effectively holding powerful entities accountable. “It illustrates the bank’s control over the regulator,” said Michael Sanderson, an AGM attendee.

In response to the allegations regarding the Sportsbet case, the ACMA clarified that any revisions to their media releases did not alter the enforcement outcome. They reiterated their objective to inform and educate the regulated community about legal standards while serving as a deterrent against future violations.

The ACMA’s commitment to robust enforcement actions is crucial in an era where digital marketing and consumer privacy are increasingly at risk. As the situation unfolds, stakeholders will be closely monitoring the regulator’s decisions against powerful corporations like Sportsbet and CBA.

Readers are urged to stay tuned for further updates as the ACMA continues to address public concerns and enforce compliance in the gambling sector.