Entain Group Pty Ltd, the parent company of Australian wagering brands Ladbrokes AU and Neds AU, has entered into an 18-month court-enforceable undertaking with the Australian Communications and Media Authority (ACMA).
This follows an investigation that uncovered more than 500 breaches of national self-exclusion rules.
Numerous breaches found
The ACMA investigation was activated following seven consumer complaints and an internal review of 50 customers registered with BetStop.
The ACMA found that Entain opened accounts for, and provided wagering services to, individuals registered with BetStop, the National Self-Exclusion Register (NSER). They also found the parent company had failed to close accounts for customers who had self-excluded.
The breaches included:
- Entain opened four new wagering accounts for customers already registered on the NSER.
- For 59 distinct days, Entain provided interactive licensed wagering services to individuals on the NSER.
- Three accounts were not closed “as soon as practicable” following customer self-exclusion, creating 449 separate breaches of subsection 61MB(5) – each day the accounts remained open counted as a contravention.
According to Australian regulations, wagering providers must close registrants’ accounts as soon as practicable once the person signs up to BetStop.
In addition to account management, the investigation also found that Entain sent out 23 regulated electronic promotional messages lacking mandatory BetStop promotion content.
Self-excluded individuals still able to wager
ACMA member Carolyn Lidgerwood stated: “Entain’s systems did not adequately identify and link all wagering accounts held by those customers across its services, including one account that remained open for more than a year after the customer had self-excluded.”
The investigation found that a customer registered on BetStop in August 2023 successfully opened two new accounts in May 2024. This came immediately after Entain’s system had confirmed the individual was still registered.
Another individual who self-excluded in September 2023 continued wagering on one of two linked accounts for over 10 months. Entain closed only the one known account.
“When people register for self-exclusion there should be no way for them to open new accounts for licensed wagering services in Australia,” emphasised Lidgerwood
Following ACMA’s investigation, Entain reported system upgrades. This included a deployment of a “single customer view” consolidating customer accounts across brands. It also included an increase in “account washing” frequency to hourly cycles for active accounts. Entain also reported updates to electronic promotional messages to incorporate mandated BetStop content.
Rather than issuing an infringement notice, the ACMA accepted Entain’s comprehensive undertaking. This agreement mandated an 18-month court-enforceable independent review of the company’s compliance systems and processes. It also included an obligation to implement any recommended improvements.
Although no infringement notice has been issued in this case, any failure to meet the terms could expose Entain to court-ordered financial penalties.
Running a tight ship
Established in 2020, BetStop serves as a national self-exclusion register enabling customers to block themselves from multiple licensed wagering operators.
Providers are legally required to prevent BetStop registrants from participating in wagering services and to close their existing accounts promptly. According to recent Australian gambling reforms, BetStop will be further strengthened following a statutory review. The reforms also include heavy regulations on advertising and protecting youngsters from gambling.
The regulatory actions against Entain follow similar moves against other operators in recent years. ReadyBet was ordered to commission an independent review of its marketing. This followed a similar investigation that found the operator had sent 273 texts and push notifications from its mobile app to self-excluded individuals.
Unibet was also fined by ACMA for allowing self-excluded individuals to continue wagering.
For Entain, the undertaking allows the company to avoid immediate penalties but commits it to correct its compliance deficiencies under independent supervision.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
Original article: https://igamingbusiness.com/legal-compliance/entain-court-enforce-undertaking-over-betstop-breaches/
