ACMA defends enforcement, rejects claims of relaxation of measures in Sportsbet case

Australia’s communications regulator, the Australian Communications and Media Authority (ACMA), has reaffirmed its strong stance on gambling regulation and recent enforcement actions.

The ACMA public review took place after it emerged that Sportsbet challenged a 2022 enforcement decision and allegedly pressured the regulator to change the wording of a public announcement on the matter.

As ReadWrite previously reported, documents released under freedom of information laws showed that the ACMA was pressured to publicly defend its 2022 enforcement result against the betting operator.

ACMA rejects claims of weakened enforcement

The ACMA defended the decision, which resulted in a record A$2.5 million ($1.7 million) fine after finding Sports betting had sent marketing text messages and emails to tens of thousands of people who had already attempted to unsubscribe, breaching Australia’s anti-spam communications regulations.

ReadWrite has contacted the ACMA for comment following the criticism. The regulator rejected any suggestion that its enforcement measures had been reduced or that it had not held Sportsbet to explain the violation.

ACMA said its compliance and enforcement activities are designed to stop illegal behavior, deter future violations and protect consumers from harm.

“In our spam prevention activities alone, in 2024-25, ACMA issued infringement notices to businesses totaling more than $13.5 million,” the regulator said.

This figure includes a penalty of 7.5 million AUD ($5 million) imposed on the Commonwealth Bank of Australia (CBA), alongside a court-enforceable undertaking for millions of similar spam violations.

The Commonwealth Bank has paid a $7.5 million fine after sending more than 170 million marketing emails that failed to comply with Australia’s spam laws.

Learn more: https://t.co/STS03y0uEQ pic.twitter.com/cyVPwzVwAX

– ACMA (@acmadotgov) October 16, 2024

However, the Commonwealth Bank’s decision itself has come under increasing public scrutiny after a ABC Report revealed that senior bank officials had pressured the ACMA to delay announcing the enforcement measures until the day after the bank’s annual general meeting.

Former Supreme Court Justice Anthony Whealy, now president of the Center for Public Integrity, said the decision to delay publication was “entirely wrong.”

Shareholders and market analysts have also questioned the ACMA’s decision to comply with the bank’s request. “This illustrates the bank’s control over the regulator,” Michael Sanderson, present at the AGM, told ABC.

Sportsbet and CBA cases investigate ACMA decision-making

Addressing the Sportsbet matter directly, the ACMA said the revisions to the press release “have in no way changed the outcome of the investigation and enforcement action”, adding that “the ACMA will continue to take strong and proportionate action to ensure that companies comply with their legal obligations”.

In conclusion, the regulator told ReadWrite: “The primary objectives behind the ACMA’s publication of its enforcement findings are to inform and educate members of the regulated community about the standards required by law and to serve as a general deterrent to the relevant regulated sector. »

The broadcaster and Australia’s top policymakers have questioned whether these actions were proportionate in practice, with Whealy saying the Commonwealth Bank’s delay “seems to me to be yet another example of the regulator trying to appease the people it regulates and make it their way, and that’s wrong, completely wrong.”

ReadWrite has contacted ACMA again for further clarification.

Featured Image: Sports Betting

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