By Rishav Chatterjee

(Reuters) – Australian gambling company Tabcorp has been fined AUD4.3 million (USD2.89 million) for repeated breaches of gambling harm prevention laws between 2020 and 2023, the Victorian Gambling and Casino Control Commission said on Friday.

Shares in Tabcorp fell as much as 3.5% to AUD0.55, the lowest level since August 8.

The fine follows an investigation into Tabcorp’s repeated failure to comply with the rules, the Commission (VGCCC) said in a statement.

The company was also alleged to have breached the Gambling Harm Reduction Act nine times in the past three years.

“The breaches at Tabcorp are the result of systematic operational deficiencies and failure to comply with licensing conditions, which have resulted in significant harm to a customer,” Fran Thorn, chair of the VGCCC, said in a statement.

The investigation found that Tabcorp sent direct marketing materials to one customer six times between October 2022 and February 2023, despite the customer’s request to opt out.

Analysts at Jefferies said the fine was imposed for misconduct, including sending promotional materials to customers who had unsubscribed, and for inadequate training of employees in limiting gambling harm.

In addition, Tabcorp failed to provide adequate support to a customer who showed signs of distress and potential gambling-related harm.

Tabcorp said in an emailed statement to Reuters that harm reduction measures put in place at the time did not meet community or regulatory standards.

“Tabcorp has since taken significant steps to improve customer safety, including the restructuring of the Safer Gambling Team, which has resulted in increased customer interventions,” the company said, adding that it is now introducing new technology to detect changes in customer behaviour more quickly.

($1 = 1.4890 Australian dollars)