Tabcorp Faces Issues for Collectively Permitting Underage Gambling
Tabcorp, Australia's main betting and gambling company, has had a difficult September. The company faced recent setbacks, including charges of underage gambling against it by the Victorian Gambling and Casino Control Commission (VGCCC).
In the past month, Tabcorp was fined a significant amount for a three-year-old system failure, and resolved an ongoing disagreement with the Australian Tax Office, earning a refund of approximately AU$83 million (US$53.2 million).
Another issue arose when an executive shared confidential company information with her spouse as part of an insider trading scheme. Nonetheless, these problems are overshadowed by the revelation that a 16-year-old was able to gamble repeatedly at Tabcorp-associated locations across the country last year.
Violated Rules and Regulations
The teenager, whose name has not been disclosed, reportedly placed bets at numerous Australian locations over 30 times. A statement from the VGCCC revealed that Tabcorp now faces over 50 charges due to its lapse in oversight.
Among these, there are 27 counts of underage gambling. Other charges stem from the company's inability to adhere to long-standing rules and insufficient monitoring of gambling areas.
Allegedly, the minor placed bets at several hotels that offer gambling, as well as one Tab betting agency in Northcote, Victoria, between September and November of last year. It appears that no one noticed or asked him to prove his age, despite the legal requirement that gambling participants be at least 18 years old in the state.
Tabcorp may receive a maximum fine of AU$698,998 (US$450,644) for these offenses. The VGCCC's investigation is ongoing, but underage gambling is considered one of the "most significant harms" possible.
The regulator is not only punishing Tabcorp this time. It is also going after the venues where the minor gambled. These include the Olympic Hotel, the Brunswick Club, the Edwardes Lake Hotel, the Parkview Hotel, the Albion Charles Hotel, the Doncaster Hotel, and the Rose Shamrock Hotel.
If found guilty, these entities could be fined collectively up to AU$1 million (US$644,700). Endeavor Group, which owns the Doncaster, the Albion Charles, and the Rose Shamrock, issued a statement stating that it is assisting the investigation.
Increased Controls Required
Due to some gaming operators and commercial enterprises' failure to comply with regulations without close supervision, the demand for built-in controls, such as facial recognition and cashless gaming, is growing. These technologies are currently being tested in pilot programs in Australia.
Many electronic gaming machines and sports betting kiosks can now be configured to power on and off in accordance with established regulatory operating hours. The VGCCC is one of several regulators advocating for the implementation of these technologies.
As long as venues allow 16-year-olds to gamble (or, in Star Entertainment's case, 12-year-olds), the necessity for more controls will continue to increase. This is one reason why Victoria is focusing on expanded responsible gambling initiatives and plans to become one of Australia's strictest regulated gambling markets.
