Australian MP Calls for Gambling Companies to Repay Bets Placed with Criminal Funds

Australian MP Proposes Law to Force Gambling Companies to Repay Crime-Funded Bets

Australian Member of Parliament Andrew Wilkie has introduced the Anti-Money Laundering and Counter-Terrorism Financing Amendment (Making Gambling Businesses Accountable) Bill 2024, which seeks to hold gambling companies accountable for accepting money linked to criminal activities. The legislation would require gambling operators to return funds identified as proceeds of crime to the victims.

Key Provisions of the Bill

The proposed legislation places a mandatory obligation on gambling companies to report suspicious transactions to AUSTRAC, Australia’s anti-money laundering agency. Additionally, it empowers the Federal Court to order the repayment of stolen funds if it is determined they were used to pay for gambling services.

Wilkie stated,
“This Bill ensures gambling companies are held accountable when they profit from stolen money. It is unconscionable that victims of crime are left uncompensated while gambling companies turn a blind eye to suspicious transactions.”

Real-Life Case Sparks Reform

Wilkie highlighted the case of Gavin Fineff, a former financial advisor who lost $3.3 million of his clients’ money to gambling. Fineff, now serving a jail sentence, was reportedly targeted by leading betting companies including Tabcorp, Ladbrokes, and BetEasy, which allegedly ignored red flags surrounding his gambling habits. These companies reportedly facilitated his addiction by offering bonuses, VIP perks, and even setting up accounts under fake names.

Despite the Supreme Court identifying the victims and their losses, the gambling operators were not legally required to return the funds. Wilkie described this as a grave injustice, emphasizing the need for legal reforms to prevent similar cases in the future.

National Push for Gambling Accountability

Wilkie’s bill is part of a broader movement by independent MPs across Australia. Legislators such as Helen Dalton (New South Wales) and Kristie Johnston (Tasmania) have introduced similar proposals, with discussions underway to expand these efforts to South Australia and the Northern Territory.

Criticism of Government’s Stance on Gambling

The Australian government has faced criticism for what many view as a soft approach toward the gambling industry. Earlier this year, Prime Minister Anthony Albanese rejected calls to ban gambling advertisements, stating,
“The problem isn’t advertising; the problem is gambling.”

Instead, Albanese highlighted lotteries and scratch cards as the most popular forms of gambling in Australia, with 64% of adults participating in 2022, compared to 38% betting on racing and 33% on sports.

Australia’s Gambling Losses Among the Highest in the World

Australia leads the world in gambling losses, with average annual losses per person reaching AU$1,635 ($1,105), according to the Grattan Institute. This far exceeds the per-capita losses in countries like the United States (AU$809/$547) and New Zealand (AU$584/$394). Additionally, a report from the Australian Institute for Family Studies revealed that 45% of Australians aged 16-35 gamble weekly.

Reforming the Industry

The proposed legislation, along with similar efforts across the country, aims to address the gambling industry’s role in enabling financial harm while ensuring stronger protections for victims of crime. Independent politicians continue to advocate for stricter accountability and reforms to curb gambling-related harm.