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AUSTRALIANS INVESTIGATE SPORTS GAMBLING RIP-OFFS

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.



Recent Gambling News :

Paddy Power 2014 Prelim Results - Online and land gambling group Paddy Power plc has published its preliminary results for the year to end December 2014, reporting the following highlights:

Ezugi in deal with Iforium - Live dealer provider Ezugi has announced a deal that will see it integrating its Live Casino solution with the Iforium Gameflex multi-vendor casino engine.

Illinois want to make online lottery ticket sales permanent - The state of Illinois' trial of online lottery ticket sales has proved such a success after 36 months that Rep. Ed Sullivan wants to see it permanently featured, and has submitted bill HB 3870 to achieve just that.

Fraser Bellamy wins Sky Poker UK Poker Championship - This week's GBP 1,100 buy-in Sky Poker UK Poker Championship at the Dusk Til Dawn facility in Nottingham will go into the books as a success with 813 entrants, many probably attracted by DTD owner Rob Yong's generous million pound guarantee boost to the prize pool.

Caesars Interactive revenues rising 63.6 percent - Caesars Interactive Entertainment, the online arm of US land gambling giant Caesars Entertainment, has reported on its fourth quarter, with revenues rising 63.6 percent to $156.4 million following good performances in social gaming and New Jersey online gambling interests.

Pennsylvania Explains HB649 covers all forms of internet gambling - Pennsylvanian Representative Ed Payne had industry observers on the hop this week on the issue of whether his new legalisation bill HB649 covers all online gambling or just online poker.

Scientific Games Extends Relationship with Atlantic Lottery Corporation - Scientific Games, a US technology company that has previously supplied Canada's Atlantic Lottery Corporation with instant games, is to extend the relationship with a new five-year contract to provide a lottery gaming system and internet-based iLottery gaming system.

Sports betting adviser Adam Meyer Struggles With Drug Addiction - The American big-money sports betting adviser Adam Meyer, perhaps better known for his role in an attempted $25 million scam on a wealthy client in Wisconsin will be out of circulation in a drug rehabilitation centre for a while, according to reports coming out of the US this week.

Pokerstars Launches Live streamed casino games - Partnering with the respected Live Dealer provider Evolution Gaming, online poker giant Pokerstars expanded its influence this week with the launch of live streamed casino action across its UK, dotcom and .eu sites.

Twitch and Poker - The news earlier this week that Pokerstars is interested in using the Twitch live streaming broadcast technology for at least some of its tournaments, and has hired expert user and poker pro Jason Somerville to advise on the medium, is being widely regarded as an indication that Twitch is about to become a major element in the poker tournament mix.

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