Unibet Fined $1 Million For Australian Gambling Law Breaches

Unibet has recently incurred a significant penalty of AU$1 million due to more than 100,000 violations of the Interactive Gambling Act 2001. This fine underscores the ongoing challenges within the Australian gambling ecosystem regarding compliance and regulatory adherence.

An in-depth investigation conducted by the Australian Communications and Media Authority (ACMA) revealed these numerous infractions against the country’s gambling regulations.

Negligence in Account Management: Unibet’s Breach of Self-Exclusion Protocols

Of the total fine, AU$1,014,120 specifically addressed Unibet’s failure to close the accounts of 954 customers registered with BetStop—the National Self-Exclusion Register (NSER) designed to assist Australians in managing their gambling behaviors.

BetStop is a robust government-backed initiative that enables individuals to restrict their access to all licensed online casinos and mobile betting platforms. Upon registration, operators are required to prevent these individuals from placing bets, creating new accounts, or receiving promotional communications.

Alarmingly, 45 of the identified accounts remained active for over 190 days. Although bets could not be placed during the self-exclusion period, accounts would automatically reactivate once the period concluded. For instance, one individual managed to place over 1,200 bets after their self-exclusion had lapsed. This occurrence directly contravenes provisions of the Interactive Gambling Act, which mandates the closure of accounts during NSER registration.

Carolyn Lidgerwood, the ACMA’s Gambling Lead, stated that the investigation unveiled “very serious breaches by Unibet over a sustained period.” She emphasized that the delay in account closures is unacceptable, failing to honor the intentions of customers seeking to mitigate their gambling activities.

Lidgerwood continued, “The NSER rules are paramount in ensuring individuals make an informed decision regarding their return to gambling. Allowing unrestricted access to old accounts fundamentally undermines this process.”

In addition to the financial penalty, Unibet has committed to a two-year court-enforceable agreement with the ACMA, which includes a rigorous independent review of its internal compliance mechanisms. The company has pledged to implement all improvements recommended by this review and will proactively reimburse the clients negatively impacted by these regulatory breaches.

A Pattern of Non-Compliance: Unibet’s History in the Australian Market

This recent penalty marks Unibet’s second brush with regulatory penalties since its foray into the Australian market in 2021 when it acquired Betchoice, a Northern Territory-based online casino. Back in May 2023, the company faced fines totaling AU$60,000 for contravening state gambling laws by promoting ‘inducements’ to gamble or open betting accounts, primarily through its promotional offerings.

The investigation found that these promotions were framed as ‘price push’ offers—enhanced or special odds—which are prohibited under Australian law, as it is illegal to distribute gambling advertisements designed to incite activity.

Betchoice acknowledged culpability for two offenses, resulting in fines of AU$30,000 each, along with the obligation to cover investigation costs.

This series of violations demonstrates the imperative need for gambling operators to prioritize compliance and proactive measures in their business practices. As the gambling landscape continues to evolve, companies must ensure they navigate regulatory requirements judiciously to maintain their standing and contribute positively to responsible gaming initiatives.

In conclusion, the ramifications of these breaches serve as a critical reminder for all operators in the sector: adherence to established gambling regulations is not simply a legal obligation, but also a cornerstone of building trust and fostering a safe environment for players.

Joe Lyons is a seasoned betting industry writer for GamblingIndustryNews, bringing years of expertise from reputable gambling platforms. Specializing in comprehensive content within the realms of sports betting and gambling, Joe holds a recognized authority in various sports, including horse racing, soccer, NFL, and NBA.