ACMA Orders Entain to Fix BetStop Controls After Breaches

ACMA Orders Entain to Fix BetStop Controls After Breaches
Australia’s media regulator has placed Entain under an 18-month enforceable undertaking. The decision follows hundreds of self-exclusion breaches across Ladbrokes AU and Neds AU.

The Australian Communications and Media Authority found that Entain failed to properly apply BetStop protections across its Australian wagering brands. BetStop is the country’s National Self-Exclusion Register. It was designed to prevent registered users from accessing licensed online wagering services.

The Entain case is centred on account matching. ACMA said some people who had self-excluded were still able to use existing accounts. Others were able to open new accounts after joining BetStop.

Account Controls Failed across Brands

The regulator’s findings point to a weak spot in multi-brand operations. Both Ladbrokes AU and Neds AU fall under the same parent company. However, ACMA found that Entain failed in some cases to identify and link accounts belonging to the same self-excluded customer.

This resulted in many violations of the rules. According to ACMA, many contraventions involved customers holding multiple accounts across the Ladbrokes and Neds services. In one instance, an account remained active for more than a year after the customer had registered with BetStop.

The investigation also revealed that Entain did not close some accounts as quickly as required. As per Australian rules, accounts belonging to individuals listed in BetStop must be closed as soon as practicable.

No Immediate Fine, but Oversight Continues

ACMA did not issue an infringement notice. According to the regulator, that option was not available in such a situation.

Entain accepted an 18-month court-enforceable undertaking. Therefore, the operator has to carry out a remediation program under ACMA oversight.

The undertaking involves an independent review of Entain’s compliance systems and procedures. The company must also implement any recommended improvements from that review.

The order applies to Entain’s operations in Australia, including Ladbrokes AU and Neds AU. Failure to comply with the order may result in court-ordered financial penalties.

BetStop Promotion Was Also Flagged

Additionally, ACMA highlighted an issue related to customer messages. The regulator pointed out that Entain failed to properly promote BetStop in certain regulated electronic communications.

While this particular case may seem less impactful compared to account problems, it raises a concern for compliance teams. Operators have to make BetStop visible and accessible in required channels, including the messages that promote their wagering services.

Market Implications

As seen from the ACMA report, self-exclusion compliance is not limited to one login check. Onboarding, account closure, identity matching, and customer messages also fall under scrutiny.

Licensed wagering operators in Australia must ensure that BetStop controls work across all of their brands and for every customer record. Failure of the operators to identify duplicated or similar accounts makes the self-exclusion list less powerful.

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