Tabcorp fined US$650k for failing to comply with VGCCC directions

An investigation was conducted into a major system outage during the 2020 Spring Racing Carnival.

09/05/23

The VGCCC fined Tabcorp for not complying with two directions.

Australia.- The Victorian Gambling and Casino Control Commission (VGCCC) has imposed a AU$1m (US$650,000) fine against Tabcorp Wagering (VIC). It’s the culmination of an investigation triggered by a major system outage during the 2020 Spring Racing Carnival.

The VGCCC’s scrutiny of Tabcorp’s operations revealed non-compliance with two Commission directions issued during the course of the investigation, which began after an outage that rendered Tabcorp’s Wagering and Betting System (WBS) inaccessible for about 36 hours on November 7, 2020.

Under the terms of the Wagering and Betting Licence and Agreement, the WBS was obligated to remain continuously available. The VGCCC’s predecessor, the Victorian Commission for Gambling and Liquor Regulation, initiated the investigation an issued the directions after Tabcorp failed to voluntarily provide comprehensive information about the incident. It said that Tabcorp’s conduct had a detrimental impact on the ability to ascertain the cause of the outage and to gain confidence in preventing its recurrence.

Tabcorp’s non-compliance with the first direction stemmed from its failure to produce a response affirming the adequacy of WBS business continuity and disaster recovery arrangements implemented post-outage. In the second, the company submitted a complaint report four months past the stipulated deadline. According to the VGCCC, the maximum penalty for contravening directions is AU$9,087,000.

Commission chair Fran Thorn said Tabcorp’s conduct was unacceptable. “We will not tolerate licensees that are not forthcoming and cooperative when the Commission investigates.

“The Commission had to use its compulsory powers and issue directions because Tabcorp did not provide the information we required about the business continuity and disaster recovery capability of its systems. It is Tabcorp’s failure to comply with these directions that has led to the fine announced today.

“All entities we regulate — no matter how big or small — have an obligation to be open and honest with the Commission and responsive to its lawfully issued directions. We will not tolerate attempts to frustrate our investigations.”

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