Ladbrokes and Neds caught out: 500+ BetStop breaches trigger crackdown

Entain Group Pty Ltd, the parent company of Ladbrokes AU and Neds AU, has entered into a legally binding undertaking with the Australian Communications and Media Authority (ACMA) following an investigation that found it provided services to individuals registered with BetStop – the National Self-Exclusion Register, while also failing to close accounts belonging to self-excluded customers.

The investigation found more than 500 breaches of national self-exclusion rules.

Under the rules, wagering providers must close a person’s account as soon as practicable once they register with BetStop.

Beyond account management failures, the ACMA also found Entain did not adequately promote BetStop in customer communications, including texts and emails, as required under the rules.

System failures across multiple accounts

ACMA member Carolyn Lidgerwood said many of the contraventions stemmed from customers holding multiple accounts across Entain’s Ladbrokes and Neds brands.

“When someone signs up to BetStop, wagering companies must close all of that person’s accounts held within their services.

“In this case, Entain’s systems did not adequately identify and link all wagering accounts held by those customers across its services, including one account that remained open for more than a year after the customer had self-excluded,” Ms Lidgerwood said.

The investigation found further breaches where new wagering accounts were opened for individuals already registered with BetStop.

“When people register for self-exclusion, there should be no way for them to open new accounts for licensed wagering services in Australia,” Ms Lidgerwood said.

18-month undertaking and compliance overhaul

In response, the ACMA has accepted a comprehensive 18-month court-enforceable undertaking from Entain.

The agreement commits the company to an independent review of its compliance systems and processes, as well as the implementation of any recommended improvements.

While the ACMA did not issue an infringement notice - an option not available in this case - it warned that failure to comply with the undertaking could result in court-ordered financial penalties.

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