By Rishav Chatterjee

(Reuters) - Australian wagering business Tabcorp has been fined A$4.3 million ($2.89 million) for repeated breaches of gambling harm prevention laws between 2020 and 2023, the Victorian Gambling and Casino Control Commission said on Friday.

Shares of Tabcorp dropped as much as 3.5% to A$0.55, their lowest since August 8.

The penalty follows investigations revealing multiple instances of non-compliance by Tabcorp, the Commission (VGCCC) said in a statement.

It also added that the company violated gambling harm minimisation laws on nine occasions over the three-year period.

"Tabcorp’s breaches reflect systemic operational deficiencies and non-compliance with the conditions of its licence, leading to significant harm to a customer," VGCCC chair Fran Thorn said in a statement.

The investigation found Tabcorp sent direct marketing materials to one customer six times between October 2022 and February 2023, despite the customer's opt-out request.

Analysts at Jefferies said that the fine was imposed for misconduct including the sending of promotional materials to customers who had opted out and for inadequate employee training to mitigate gambling harm.

Additionally, Tabcorp failed to provide sufficient support to a customer displaying signs of distress and potential gambling harm.

Tabcorp in an emailed statement to Reuters said the harm minimisation measures in place at the time did not meet either community nor regulatory standards.

"Tabcorp has since taken significant steps to improve customer safety, including re-structuring the Safer Gambling Team which has led to an increase in customer interventions," the firm said, adding that it now is introducing new technology ti detect changes in customer behaviour faster.

($1 = 1.4890 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Nivedita Bhattacharjee)