Entain Fined for Breaching Self-Exclusion Rules in Australia

Entain Group Pty Ltd, the parent company of Ladbrokes AU and Neds AU, has entered into a legally binding agreement with the Australian Communications and Media Authority (ACMA) following the discovery of over 500 breaches of the country’s self-exclusion rules. This investigation revealed significant lapses in the company’s compliance with the National Self-Exclusion Register, known as BetStop.

The ACMA’s probe found that Entain continued to provide services to individuals who had self-excluded through BetStop, with accounts remaining active despite the mandatory closure requirements. Under current Australian regulations, any customer who registers for self-exclusion on BetStop must have their account immediately closed across all wagering platforms.

A Breakdown of the Breaches

The violations primarily stemmed from Entain’s failure to properly identify and manage accounts linked to individuals on BetStop. ACMA member Carolyn Lidgerwood explained that several customers had multiple accounts across the Ladbrokes and Neds services. These accounts were not promptly closed, leading to the breaches.

“In this case, Entain’s systems did not adequately identify and link all wagering accounts held by those customers across its services, including one account that remained open for more than a year after the customer had self-excluded,” Lidgerwood said in ACMA’s official release.

In addition to the issue of account identification, Entain was found to have allowed new accounts to be created for self-excluded individuals. This is a clear violation of the self-exclusion rules, which stipulate that once a person registers for BetStop, there should be no way for them to open new accounts with any licensed wagering service in Australia.

The investigation also revealed that Entain had not sufficiently promoted BetStop through customer communications, such as text messages and emails, as required by law.

Legal Consequences and Actions

As a result of the investigation, Entain has agreed to an 18-month court-enforceable undertaking. This undertaking requires the company to undergo an independent review of its compliance systems and implement any necessary improvements as recommended. The ACMA emphasized that while no infringement notice was issued, failure to comply with the enforceable undertaking could lead to court-ordered financial penalties.

Carolyn Lidgerwood noted the seriousness of the issue, saying, “When people register for self-exclusion there should be no way for them to open new accounts for licensed wagering services in Australia.” This breach underscores the challenges that many operators face in ensuring robust protections for self-excluded customers.

The case with Entain serves as a stark reminder of the importance of self-exclusion systems in the Australian gambling industry, especially as concerns about problem gambling continue to rise. It also highlights the increasing scrutiny of gambling operators by regulatory bodies like the ACMA, particularly when it comes to safeguarding vulnerable customers.

This incident is part of a broader trend of heightened regulatory attention in Australia, as authorities seek to enforce stricter measures to protect consumers and prevent problem gambling. The ACMA’s investigation into Entain reflects the ongoing efforts to ensure that operators comply with the safeguards designed to protect individuals who have chosen to self-exclude from gambling services.

As part of the settlement, Entain has committed to taking corrective actions, which will be monitored over the next 18 months. The industry will be watching closely to see how the company implements these changes and whether other operators in Australia face similar scrutiny in the near future.