O’Shea Bookmaking Pty Ltd, operating under the brand TexBet, has faced legal repercussions, being fined $33,000 for violations related to its handling of a customer’s request to cease gambling activities. The judgment was passed in the Downing Centre Local Court on Wednesday, September 25, marking a precedent in New South Wales (NSW) for offenses that involve direct marketing without consent and the failure to close a betting account upon request, following regulations established in 2019.
Legal and regulatory challenges in online betting:
The case emerged from a complaint by a former customer of TexBet who, in May 2022, withdrew their consent for receiving gambling advertisements and requested the closure of their betting account. Contrary to the customer’s demands, TexBet proceeded to send four gambling-related text messages and accepted 75 new bets from the customer past the requested closure date.
This behavior led to a significant fine imposed by the state regulator, Liquor & Gaming NSW, which has underscored the seriousness of the breach. Jane Lin, Executive Director of Regulatory Operations at Liquor & Gaming NSW, stated the importance of such regulations, noting in a press release:“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.”
Jane Lin further emphasized the dangers associated with unsolicited gambling promotions, explaining 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 highlighted the increased risk of gambling harm due to TexBet’s actions, pointing out the direct link between targeted gambling ads and increases in betting, expenditure, and associated harms.
The repercussions for TexBet reflect a broader enforcement action by Liquor & Gaming NSW, which aims to ensure that all online gambling entities within the state adhere to strict guidelines preventing direct advertising to individuals who have opted out of such communications.
Strengthening enforcement and compliance:
The recent ruling against TexBet coincides with a broader compliance effort across NSW. Over recent months, state inspectors conducted checks at 528 venues, including hotels and clubs with gaming machines, to confirm adherence to new legislative requirements that took effect on September 1 under the revised Gaming and Liquor Administration Act of 2016. Among the enforced regulations were the establishment of a responsible gaming officer and the creation of a gambling incident register at each venue, as well as the removal of gambling-related signage from areas near ATMs.
Liquor & Gaming NSW reported that approximately 93% of venues are now in compliance with the new regulations, indicating a positive response to the enhanced enforcement efforts.