Tabcorp Incurs Another Fine in Australia for Breaching Betting Regulations

Tabcorp Faces Penalties for Violating Betting Regulations in Australia

Tabcorp CEO Adam Rytenskild in a company photo
Tabcorp CEO Adam Rytenskild in a company photo. The gaming operator has received another fine – it’s third of September – for additional violations. (Image: The Australian)

Tabcorp, an Australian gaming operator, has once again found itself in trouble with gaming regulators for not adhering to established rules. In September, the company received a fine from New South Wales (NSW), marking its second fine in less than a month.

The fines were imposed by Liquor and Gaming NSW, the authority responsible for overseeing liquor and gaming activities in NSW. The regulator’s complaint against Tabcorp was deemed valid by a judge.

The violation at the center of the complaint involves Tabcorp’s marketing practices, specifically the sending of unsolicited marketing material to individuals who are not registered users, which violates NSW regulations. Despite the violation, the fine imposed on Tabcorp is relatively small.

Forgiveness Over Permission

This is not the first time Tabcorp has faced penalties for non-compliance. Last year, the company was fined by the Victorian Gambling and Casino Control Commission for a system outage during the spring 2020 Carnival. Tabcorp had to pay AUD1 million (US$638,600) to settle the case.

In addition, Tabcorp is facing the possibility of another fine from Victoria’s gaming regulator for allowing a minor to place wagers on multiple occasions and at different venues. The potential fine could amount to AUD698,998 (US$450,644).

Compared to these fines, the fine imposed by Liquor and Gaming NSW seems negligible, with the regulator requesting AUD15,000 (US$9,618).

The recent violation occurred when Tabcorp launched a deal on its online gaming portal, offering bonuses to gamblers. However, due to an internal mishap, the deal inadvertently granted access to non-account holders, a practice prohibited by NSW gaming regulations.

According to Jane Lin, director of Liquor and Gaming NSW, Tabcorp, as a major corporation, should have exercised a higher level of vigilance and responsibility.

Tabcorp CEO’s Controversial Compensation

Alongside the fines, there is growing discontent regarding the compensation of Tabcorp CEO Adam Rytenskild.

The Australian Shareholders’ Association (ASA) has raised concerns about what it perceives as excessive compensation for Tabcorp executives. The ASA has advised shareholders to vote against the company’s proposed compensation plan, citing disproportionate remuneration packages.

Rytenskild’s salary and contractual bonuses could total at least AUD4.5 million (US$2.88 million), with the potential to reach AUD6.75 million (US$4.32 million) if additional goals are met.

The ASA’s vote against the remuneration package aims to influence corporate governance and align executive compensation with shareholder interests.

The ASA’s stance reflects a desire for increased transparency and accountability in Tabcorp’s decision-making. The association believes that adjustments should be made to directors’ salaries, especially since the company spun off The Lottery Corporation last year.

Tabcorp’s stock price indicates that shareholders may support this position. The stock reached its highest point in the past month on September 4, trading at AUD1.11 (US$0.71), but has since dropped to its lowest point of the year at AUD0.94 (US$0.60).

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