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Office of Fair Trading officials in the Australian territory of Queensland are currently investigating the activities of up to thirty sports arbitrage companies, mostly based on the Gold Coast, reports the Courier-Mail newspaper.
Some 650 gamblers have lodged complaints about the operators, who have allegedly been ripping players off with elaborate sports betting scams involving millions of dollars.
It is understood that half of the companies have vanished, after police found only empty land or a post office box as the principal place of business after following up on customer complaints.
Sporting arbitrage involves customers being offered "guaranteed" wins by spreading their bets on all possible outcomes with different bookmakers.
Nine software firms are also believed to be under investigation, and the newspaper names Sports Investment Services, which touts sports betting returns of 56 percent compared with only 6 and 9 percent on the share and property markets. Sports Investment Services director Mark Henderson told Courier-Mail reporters he had had several complaints, but insisted he had done nothing wrong and sold software to help pick winners.
"It gives clients stand-out picks to bet on," he said.
Asked about the claims of 56 percent betting returns on the company's website, Henderson said: "At the time when it was published these figures were correct but they are variable and at different points they can return different things."
The Courier-Mail reports that 650 punters have complained since last August after losing on the intricate betting systems or being unable to contact companies once they paid membership fees of between A$3 000 and A$19 000.
Fair Trading Minister Peter Lawlor told the newspaper that the high number of complaints showed consumers were rarely pocketing any profits.
"They are simply scams which are designed to take the money off unwitting consumers," Lawlor said. "We also found that once these companies start receiving complaints from their clients, they often simply close down and start up again somewhere else under a new name."
Lawlor said some of the companies styled themselves as investment schemes using "financial instruments" and "risk free" to secure the profits. They also often used telemarketers with false names to entice clients into parting with their money, he said.
The Office of Fair Trading would not confirm which companies were in the investigation's sights, but the Courier-Mail names Suncity Equities and Investments and a firm called Profitrunner as being among those  investigated.
The money thought to have been lost through the companies, which are often part of a tangled web of other corporates, is believed to be between $4 million and $6 million.
The probe does not involve mainstream betting companies such as UNiTAB or Betfair.

Gambling News :

Chinese Government to Support Macau - Macau's struggling gambling industry could receive a boost from the Chinese government before the end of the year, although details of what this could include have not yet been made public.

New York clubs and bars Want On premises Gambling - The Amusement and Music Owners Association of New York would on the face of it appear to be an unlikely supporter for legalised online gambling, but the trade association and equipment supplier Betson Enterprises are about to embark on just such a campaign.

Dafabet in Esports Deal - The latest online gambling operator to join the eSports trend is Dafabet, which this week signed a partnership deal with eSports operator Fnatic, agreeing to sponsor and promote the site to its international player base, and provide Dafabet branding for Fnatic eSports tournaments.

Cambodian government awards 10 new gambling licenses - The Cambodian government has issued 10 new land casino licenses but says that the new operators are mainly interested in online opportunities that are possible through the licenses; in Cambodia, land licensees can add online gambling to their offering.

CASINO REWARDS WINS A.S.A. CASE - Apollo Entertainment Ltd, which operates the Casino Rewards online gambling enterprise, had to defend a serious age-related issue reported to the Advertising Standards Authority last month. Whilst it was successful, the case did highlight a potential problem area for the industry.

Czech gambling industry Growing Rapidly - The overall Czech gambling industry is worth around 138,000,000,000 Czech Korunas (GBP 3,761,890,857) a year in wagers based on 2014 statistics, and the online and mobile component is growing rapidly, the Prague Post reported this week.

GAMEACCOUNT AND FOXWOODS PARTNERSHIP IS OVER - A little over eighteen months ago the owners of the famous US resort casino Foxwoods, the Mashantucket Pequot Gaming Enterprise, and Irish online gambling technology company GameAccount teamed up to debut GAN's first free-to-play 'Simulated Gaming' online casino product in the US...but the partnership has not lasted.

DJI Holdings mobile lottery app trial in China - DJI Holdings, a London-based firm that has penetrated the Chinese lottery market , has announced a new achievement, reporting that it has been given official approval to conduct a mobile sports lottery app field trial in the Shandong provincial city of Qingdao.

DraftKings advertising to Start In The UK - UK residents; brace yourself for a storm of daily fantasy advertisements following the announcement Friday that DraftKings has inked a partnership deal with the usually fanatical anti-betting US National Football League.

NCAAF Odds: No. 13 Alabama at No. 8 Georgia - For the first time since 2009, the No. 13 Alabama Crimson Tide are underdogs. They're getting 1.5 points at press time for Saturday's game (3:30 PM ET, CBS) in Athens against the No. 9 Georgia Bulldogs. Georgia is 4-0 SU and 2-2 ATS to start the season, while Alabama's title hopes are already on life support at 3-1 SU and 1-3 ATS.

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