The Australian Communications and Media Authority (ACMA) is reportedly investigating Entain Australia & New Zealand after the operator allegedly sent emails sent to inactive customers warning them to place a bet or risk monthly inactivity fees.
According to the Sydney Morning Herald, the Ladbrokes Australia brand also failed to disclose the customer’s legal right to close their account through the government’s self-exclusion website, BetStop, and have their money returned.
This is just the latest in Entain’s Australian troubles, after the operator recently entered into a court-enforceable undertaking after more than 500 breaches of national self-exclusion rules were discovered as part of a separate ACMA investigation.
The Sydney Morning Herald stated that Entain ‘sends the emails to customers who have been dormant for 18 months, warning them it will begin charging a $5 a month fee for holding their money’.
The report added that the ACMA confirmed it was reviewing to see if the emails breached requirements to promote BetStop.
Inactivity email
BetStop requires operators in Australia to close the accounts of any customer who signs up to self-exclusion and to return any balance remaining on their account to them, as well as ban them from creating a new account.
Customers must also be informed by operators about BetStop services in any electronic messages promoting or advertising gambling, including activity statements.
According to the news outlet, Ladbrokes emailed one customer who had not wagered recently. The operator reportedly said that it ‘wanted to remind’ the customer that they had agreed that after 18 months of no betting activity “an account is deemed inactive and an inactive account fee of $5 (or your remaining balance if less than $5) will be charged”, then $5 monthly.
The email also reportedly said that if wagering activity occurred before a certain date, accounts wouldn’t be considered inactive and no deductions would be made.
The Sydney Morning Herald added that if a customer’s balance “includes money they deposited but never wagered, Ladbrokes does not allow them to simply withdraw it”, as all deposited funds must be turned over on a bet.
“Neither of the inactivity emails mention BetStop, nor the ability for a customer to have their funds returned to them without placing further bets,” said the news outlet.
SBC Media has reached out to Entain for comment on the Sydney Morning Herald report about dormant customers and inactivity fees.
Entain’s over 500 self-exclusion breaches
The report about dormant customers and inactivity fees comes mere days after the operator committed to ‘meaningful’ steps to improve its player protection measures, after an ACMA investigation found over 500 self-exclusion breaches.
The ACMA investigation found that Entain had:
- Opened accounts and provided wagering to people registered with BetStop.
- Opened new accounts for individuals registered with BetStop.
- Failed to adequately promote BetStop in customer texts and emails.
ACMA has accepted a comprehensive 18-month court-enforceable undertaking from Entain, as the company will commit to an independent review of its compliance systems and processes and implement any recommended improvements.
An Entain Australia spokesperson said in response to the ACMA investigation: “We take all our regulatory responsibilities seriously. These matters arose during the early stages of a new national system, and we have worked constructively with the ACMA to implement meaningful enhancements to our processes and controls.
“Our focus is on getting this right for our customers, particularly those who choose to self-exclude, and on building long-term trust through a strong, compliance-led culture.”
