Ladbrokes is currently under investigation by The Australian Communications and Media Authority (ACMA) for allegedly breaching laws set by BetStop.
The ACMA is determining whether the inactivity emails sent by Ladbrokes breaches the rules requiring betting companies to promote BetStop, a one-stop federal service that allows people to close all their gambling accounts, have their money refunded, and prevent the creation of new accounts in their name.
Ladbrokes has emailed customers who have not placed a bet withing 18 months, that the inactivity will result in a monthly AU$5 fee, without disclosing their legal right to close accounts via a government site and have their money returned.
The official laws under BetStop states that wagering companies in Australia must close the accounts and return balances to any customer who signs up for the program. It also states that companies must bar excluded people from creating new accounts.
Betting companies must inform users about BetStop in any electronic messages promoting or advertising gambling.
Ladbrokes parent group, Entain recently managed to avoid a fine, when it was found to have breached laws protecting gamblers.
None of the inactivity emails sent, mentions BetStop or the ability for the customer to have their funds returned to them without having to place further bets.
“We will seek further information from Ladbrokes about the classification of their ‘inactivity’ message and the company’s approach to meeting the relevant legislative obligations,” an ACMA spokesman said.
ACMA could potentially issue hefty penalties of up to AU$59,400 for breaching the BetStop obligations. And can choose to take providers to court.
Entain invested £7.5m for a Gibraltar office refurbishment
