Anti-gambling register firm defends industry ties amid debt and tax woes

The firm that maintains Australia’s gambling self-exclusion register has rejected conflict of interest concerns over a director’s roles with major wagering industry businesses, as the company urgently seeks cash to stay afloat amid mounting debt and a missed ATO tax bill.

Dataworks, which the Australian government has paid to maintain its BetStop register of problem gamblers since mid-2023, has defended the position of its director Ian Penrose, who is simultaneously a senior independent director of Playtech, a $1.38 billion UK-based gambling tech giant that sells software to operators of online casinos and wagering platforms.

Penrose is also vice chairman of Weatherbys, a UK firm generating real-time horse racing data that betting companies ultimately pay to access, to offer wagering and set odds.

Signing up to the BetStop register, launched in 2023, allows problem gamblers to have all of their accounts closed automatically, with operators forced to ban such customers from opening new accounts in the future. Operators are also obliged to cease marketing to anyone registered with BetStop.

Adam Glezer, who runs the advocacy business Consumer Champion, was alarmed to discover Penrose’s simultaneous board positions.

“There are only three people on Dataworks’ board of directors, and one of them also sits on the board of a company that profits when people keep gambling,” he said. “That’s not a minor interest, that’s a third of the whole board.

“If their excuse is that he’s there for his industry knowledge, that doesn’t wash. He’s worn both hats for close to five years,” Glezer said.

In response to questions about a conflict of interest, a Dataworks spokesman defended Penrose’s non-executive directorships and said the company considers his “extensive experience across regulated gaming, technology and corporate governance to be a benefit to Dataworks and to the development of effective player-protection technology”.

The spokesman noted that in the case of Playtech, Penrose has informed the company he will step down from the UK-based firm by 31 December. In relation to Penrose’s vice chairmanship of Weatherbys, the spokesman said that company primarily sold its real-time data technology services to sports governing authorities. Those bodies then sell access to the data feeds to wagering companies.

“Dataworks has appropriate governance processes for identifying and managing any actual or potential conflicts involving its directors,” the spokesman said.

The controversy coincides with financial woes for ASX-listed Dataworks, which also maintains Ontario’s self-exclusion register. This week, the $14.4 million company announced a $4.24 million capital raise, which will mostly be used to clear a $1.5 million, 18 per cent interest loan and $2.4 million in withheld ATO income tax that is overdue.

In its preliminary annual financial report, Dataworks noted that without this capital, “there is a material uncertainty that may cast significant doubt as to whether the Company will continue as a going concern”.

In response to questions, a Dataworks spokesman defended its financial position, noting its operating revenue increased 24 per cent in the past financial year, while its statutory loss reduced by 78 per cent to $2.25 million. The spokesman also said it had received “firm commitments” for $3 million of the capital it is seeking to raise.

“The company has been transparent with the market regarding its financial position and funding requirements. The current raising is intended to further strengthen the balance sheet and support the company’s next stage of growth,” the spokesman said.

The spokesman also said it would be incomplete to characterise the capital raising simply as for the repayment of the loan facility and its tax office debts.

The spokesman said Dataworks would not comment publicly on whether it had warned the Australian government about risks to its ability to continue maintaining the BetStop register should the business collapse.

“At no point has Dataworks assessed its financial position as presenting a risk to continuity of service, and it does not consider such a risk exists today,” the spokesman said.

Dataworks received the contract to maintain BetStop after the initial operator, Big Village, entered voluntary administration before the register’s launch.

The Australian Communications and Media Authority (ACMA), which regulates online gambling and has responsibility to oversee BetStop, said it was in regular contact with Dataworks about “its performance against its contractual requirements”.

“The ACMA has undertaken extensive due diligence in appointing Dataworks to operate the register. This included consideration of any actual, potential or perceived conflicts of interest. The ACMA continues to manage the contract in accordance with established governance and assurance arrangements,” the ACMA’s spokesman said.

ACMA’s spokesman referred to a December review of BetStop that found it was performing in line with expectations.

A spokesman for communications minister Anika Wells said “the government’s expectation is ACMA continues to work with the operator to ensure the register is providing support to people who need it”.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.