TexBet to Pay AU$33,000 Fine over Account Closure and Advertising Breaches

The New South Wales gambling regulator, Liquor & Gaming NSW, penalized O’Shea Bookmaking for targeting a customer with gambling ads after they had requested the closure of their betting account. The online bookmarker, trading as TexBet, was sentenced in the Downing Center Local Court for violating the Betting and Racing Act 1998 (NSW). It is expected to pay an AU$33,000 (US$22,860) fine. This is the first time an online betting company has been penalized in NSW, Australia, for direct marketing without consent after it became illegal in 2019.

Significant Legal Violations

The case against TexBet arose from a complaint by a former customer of its online betting services, who requested account closure and retracted consent to receive gambling advertisements. However, TexBet ignored the request and sent four betting ads through text messages. It also accepted 75 new bets from the client after they had put in a closure request.

NSW Clamps Down on the Rule Breaker

The violation resulted in an AU$33,000 fine imposed by Liquor & Gaming NSW, which highlighted the significance of such irresponsible behavior. Jane Lin, Executive Director of Regulatory Operations at Liquor & Gaming NSW, underscored the crucial nature of such regulations. She noted in a press conference, “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 further spoke on the dangers linked to unprompted gambling advertisements, pointing out that “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 emphasized the heightened risk of gambling harm to individuals due to TexBet’s violations.

Bolstering Regulatory Compliance

Slapping TexBet with a fine shows dedication by Liquor & Gaming NSW to ensuring all online betting entities adhere to the state’s laws and regulations regarding advertising to individuals who have withdrawn their consent. The state regulator has inspected 528 venues to confirm their adherence to legislative amendments under the Gaming and Liquor Administration Act of 2016. The authority reported that about 93% of the venues comply with the new laws, a positive response to strengthened enforcement.