Tabcorp shares slide after paying illegal in-plays bets penalty
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The news: Shares in Tabcorp lowered after the gambling group paid a $262,000 penalty for taking online in-play sports bets, which is illegal in Australia.
The numbers: Tabcorp shares fell 4.9% to 48.5 cents by 1:45pm AEDT, having lost more than 40% since January.
An investigation by the Australian Communications and Media Authority (ACMA) found Tabcorp accepted 854 in-play bets across 69 tennis matches between April and October 2023.
The context: Online in-play betting — wagers made on a sporting event after it has commenced — is prohibited in Australia under the Interactive Gambling Act 2001.
During the ACMA investigation Tabcorp reported that the breaches occurred due to a technical 'bug' in its systems. While the error first occurred in April 2023, it was not fixed until October 2023.
In addition to paying the penalty, Tabcorp has also advised the ACMA of controls it now has in place and future steps it will be taking to minimise the risk of online in-play bets being accepted.
The ACMA noted that Tabcorp had voided all bets so consumers did not suffer any loss and Tabcorp did not profit from the errors.
Tabcorp was previously issued a formal warning by the ACMA in November 2021 for accepting in-play bets on a US college basketball game.
The source: ACMA media release
