TexBet, a brand operated by O’Shea Bookmaking Pty Ltd, found itself in hot water recently, being slapped with a hefty $33,000 fine for failing to adhere to regulations regarding a customer’s request to cease gambling activities. This landmark judgment, handed down by the Downing Centre Local Court on September 25, sets a precedent in New South Wales (NSW) for offenses related to direct marketing without consent and the refusal to close a betting account upon request, in accordance with laws established in 2019.
The incident that led to this legal trouble stemmed from a complaint lodged by a former TexBet customer in May 2022. This customer had withdrawn consent to receive gambling advertisements and had asked for their betting account to be closed. Despite these clear instructions, TexBet continued to send four gambling-related text messages and accepted 75 new bets from the customer after the closure request had been made.
The gravity of this breach did not go unnoticed by state regulators, with Liquor & Gaming NSW imposing a substantial fine on TexBet. Jane Lin, the Executive Director of Regulatory Operations at Liquor & Gaming NSW, stressed the importance of these regulations in a press release, stating, “By engaging in this behavior TexBet has broken a law that was put in place to protect vulnerable people who are trying to exclude themselves from gambling.”
Lin went on to highlight the risks associated with unsolicited gambling promotions, noting, “These laws were specifically developed to reduce the risk of gambling harm by requiring online betting businesses to make it simple for people experiencing harm to self-exclude and opt not to receive ads about gambling products.” She pointed out the increased risk of gambling harm stemming from TexBet’s actions, linking targeted gambling ads to rises in betting, spending, and associated harms.
In a bid to strengthen enforcement and compliance, the recent ruling against TexBet aligns with a wider effort across NSW. Inspectors have conducted checks at 528 venues, including hotels and clubs with gaming machines, to ensure compliance with new legislative requirements that came into effect on September 1 under the revised Gaming and Liquor Administration Act of 2016. These requirements include the appointment of a responsible gaming officer at each venue, the creation of a gambling incident register, and the removal of gambling-related signage near ATMs.
Liquor & Gaming NSW reported that approximately 93% of venues are now compliant with the new regulations, signaling a positive response to the increased enforcement measures.
