Betting company BlueBet under fire for lacking VIP customer security measures
In a recent investigation, the Northern Territory Racing and Wagering Commission (NTRWC) found concerning practices by Australian bookmaker BlueBet regarding a high-stakes VIP customer in 2021. The inquiry revealed that BlueBet repeatedly incentivised the customer, who lost nearly A$570,000 over four months, despite clear red flags such as requests for bonus bets and a closure of account request [1][2][3].
The VIP customer was given VIP status and assigned a dedicated account manager, whose commission was directly linked to the customer's net gambling revenue. Despite the account manager having no evidence of harm minimization training, the customer gambled close to A$400,000 over the next two weeks. Even after incurring losses of A$700,000, it was only after four months that the company checked whether the customer could afford to continue betting [2][5].
The NTRWC found "serious" breaches involving the prioritisation of profit over harm minimisation obligations. The regulator described the conduct as "unacceptable" and "extremely concerning" [2][5]. As a result, BlueBet was fined AUD 53,380 by the NTRWC for failing to protect the VIP gambler adequately. However, this fine represented less than 10% of the customerβs losses, which has been criticised by independent politicians as too lenient to serve as an effective deterrent [4][5].
The investigation also highlighted the need for bookmakers to proactively monitor and assist customers showing signs of gambling harm. The Victorian Gambling and Casino Control Commission (VGCCC) imposed an AUD 80,000 fine on another bookmaker, QuestBet, for failing to intervene when a customer exhibited signs of distress [1][3].
Tasmanian independent MP Andrew Wilkie has urged for much harsher penalties on companies like BlueBet, suggesting fines that would "hurt the company financially" enough for it to prevent repeat failures [5]. Proposed and advocated penalties seek to impose substantially larger fines tied to the amount lost by customers to create meaningful financial consequences that discourage harmful behaviour.
It is important to note that bookmakers in Australia, such as BlueBet, are legally required to actively promote responsible gambling, especially towards high-stakes VIP customers. They must monitor gambler wellbeing, intervene upon signs of distress, and provide harm minimisation tools like setting spending limits and self-exclusion options. Failure to do so violates the relevant codes of conduct and licensing conditions enforced by state and territory regulators [1][2][3].
Following the investigation, BlueBet merged with the gambling company Betearlier this year, which means it no longer operates independently. The case serves as a reminder for all bookmakers to prioritise responsible gambling practices to protect their customers and comply with regulatory requirements.
References:
- The Age
- 9 News
- ABC News
- The Conversation
- The Sydney Morning Herald
- Bookmakers in Australia, like BlueBet and Betearlier, are legally obligated to prioritize responsible gambling, especially for high-stakes VIP customers, providing harm minimization tools and monitoring gambler wellbeing.
- The Northern Territory Racing and Wagering Commission (NTRWC) imposed a fine of AUD 53,380 on BlueBet for failing to adequately protect a VIP gambler, with some independent politicians labeling the penalty as too lenient.
- Independent MP Andrew Wilkie has proposed much harsher penalties on companies like BlueBet, suggesting fines proportional to the amount lost by customers to discourage harmful gambling practices.
- The investigation into BlueBet's practices underscores the importance of bookmakers proactively monitoring and assisting customers showing signs of gambling harm, like QuestBet was fined for failing to do so.
- Regulators, such as the NTRWC and the Victorian Gambling and Casino Control Commission (VGCCC), enforce codes of conduct and licensing conditions to ensure casino-and-gambling companies cultivate a culture of responsible gambling, from casino-games like poker to sports-betting and lotteries, to protect customers and ensure the industry operates fairly for all casino-personalities.
