TexBet Fined $33,000 for Failing to Close Gambler’s Account After Request
Australian online bookmaker TexBet has been fined $33,000 for violating New South Wales (NSW) gambling laws by sending gambling ads and accepting bets from a customer who had requested their account be closed. This marks the first case of its kind since the introduction of regulations aimed at protecting vulnerable individuals from gambling harm.
TexBet Fined $33,000 for Ignoring Account Closure Request
O’Shea Bookmaking Pty Ltd, operating as TexBet, was penalized for offences under the NSW Betting and Racing Act 1998. The fine was handed down by the Downing Centre Local Court following an investigation by Liquor & Gaming NSW.
This is the first instance where an online bookmaker in NSW has been fined for direct marketing without consent and failing to close a betting account upon request, two offences introduced in 2019.
The case originated from a complaint by a former TexBet customer who had withdrawn their consent to receive gambling advertisements and requested that their account be closed in May 2022. Despite the customer’s request, TexBet continued to send four gambling ads via text message and accepted 75 new bets from the individual, directly violating their request.
Serious Breach of State Laws
Liquor & Gaming NSW Executive Director of Regulatory Operations, Jane Lin, emphasized the seriousness of TexBet’s actions. “By engaging in this behaviour, TexBet has broken a law that was put in place to protect vulnerable people who are trying to exclude themselves from gambling,” Lin stated. She highlighted that the regulations were designed to minimize gambling harm by ensuring customers can easily self-exclude and opt out of receiving advertisements.
Lin further noted that direct marketing of gambling inducements can lead to an increase in betting behavior, which in turn elevates the risk of gambling-related harm. “Not only has TexBet broken the law, but it also placed this individual at greater risk of further gambling harm by sending them ads and accepting their bets after they specifically requested for their account to be closed,” Lin added.
“Online betting businesses that operate in NSW need to ensure they have robust systems in place to prevent direct advertising to people who have opted out. If they fail to abide by NSW gambling laws they should expect to be caught and prosecuted”, she pointed out.
