ACMA Investigates Entain Over Inactivity Fee Warnings Sent to Customers
(AsiaGameHub) - The Australian Communications and Media Authority (ACMA) is reportedly investigating Entain Australia & New Zealand after the operator allegedly sent emails to inactive customers warning them that they must place a bet or face monthly inactivity fees. According to the Sydney Morning Herald, the Ladbrokes Australia brand also failed to disclose to customers their legal right to close their account via the government’s self-exclusion platform, BetStop, and have any remaining balance returned. This latest development follows Entain’s recent involvement in a court-enforceable undertaking after more than 500 breaches of national self-exclusion rules were uncovered during a separate ACMA investigation. The Sydney Morning Herald reported that Entain sends these emails to customers who have been dormant for 18 months, informing them that a $5 per month fee will be applied to their account for holding funds. The report added that the ACMA confirmed it is reviewing whether these emails violate requirements to promote BetStop. Inactivity email BetStop mandates that operators in Australia close accounts of any customer who registers for self-exclusion and return any remaining balance to them, while also preventing them from opening new accounts. Operators are also required to inform customers about BetStop services in all electronic communications related to gambling promotion or advertising, including activity statements. According to the news outlet, Ladbrokes emailed a customer who had not placed any recent bets. The operator reportedly stated that it “wanted to remind” the customer 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”, with the fee continuing monthly thereafter. The email also reportedly indicated that if wagering activity occurs before a certain date, the account would not be considered inactive and no deductions would be made. The Sydney Morning Herald further noted 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 first be used 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,” the news outlet said. SBC Media has reached out to Entain for comment on the Sydney Morning Herald report regarding dormant customers and inactivity fees. Entain’s over 500 self-exclusion breaches The report on dormant customers and inactivity fees comes just days after the operator committed to ‘meaningful’ improvements to its player protection measures, following an ACMA investigation that identified over 500 self-exclusion violations. The ACMA investigation found that Entain had: Opened accounts and allowed wagering for individuals registered with BetStop. Opened new accounts for people 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, requiring the company to commit to an independent review of its compliance systems and processes, and implement any recommended improvements. An Entain Australia spokesperson commented 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.” This article is provided by a third-party. AsiaGameHub (https://asiagamehub.com/) makes no warranties regarding its content. AsiaGameHub delivers targeted distribution for iGaming, Casino, and eSports, connecting 3,000+ premium Asian media outlets and 80,000+ specialized influencers across ASEAN.
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