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Online betting companies face campaign over hi-tech methods punishing winning gamblers

Online sports betting platforms would be unable to ban successful punters under a strategy backed by a prominent South Australian MP.

SA independent MP Frank Pangallo.
SA independent MP Frank Pangallo.

Online sports betting platforms would be stopped from blocking or curtailing successful punters under Australian-first legislation backed by a prominent independent MP.

South Australian independent MP Frank Pangallo has introduced proposed new laws designed to stop gambling giants from using technology to weed out winning punters.

Mr Pangallo has warned the companies have been targeting people who have had success on the horses or other pursuits as an unfair means to maximise their corporate profits.

He said online betting in Australia had become a pursuit that was rigged against punters and it was time the companies were held to account.

The old-style battle between gambler and bookies had been transformed, with the conglomerates having new technology at their disposal to maximise their own returns, he said.

One strategy was to focus heavily on losers but at the same time cut out anyone who had worked out successful systems.

“In any other industry, that would be unconscionable, if not illegal, conduct.

“And if you’re banned – and that happens when you become unprofitable to the company – every IP address you ever used will be similarly black-marked just in case you pass on your strategy to another person,’’ Mr Pangallo said.

“It’s unconscionable behaviour by greedy operators making hundreds of millions of dollars in profit each year.

“They prey on and encourage punters who habitually lose, and ban those who affect their bottom line. An invincible strategy!

“The timing of this bill could not be more topical given the ­millions of dollars that will be splurged next week on the Melbourne Cup.”

The South Australian government has vowed to examine the bill and consider its intent.

Under Mr Pangallo’s Authorised Betting Operations (User Bans) Amendment Bill, companies would no longer be allowed to ban, refuse or restrict punters because they win.

Companies would also no longer be allowed to change the odds on certain players to improve the financial gains, would need to give written reasons why they have refused or placed restrictions on a punter’s betting, and wouldn’t be able to exploit minimum payout or withdrawal limits to hold on to a customer’s winnings.

Mr Pangallo said the only exception would be with smaller operators, which would be allowed to refuse a bet that pays out more than $5000 over the stake if they couldn’t meet the debt.

“Betting operations are one of – if not the only – business model that sustains its viability by restricting or banning users who pose a threat to their profit margins. They want losers. Sucker punters,” he said.

“These companies have departments of people in ‘risk management’ whose sole job is to identify, limit or ban perceived profitable players.

“They enter the market willingly and pocket billions of dollars from losers willingly – so they cannot cry poor when it comes time to pay out a winner.

“This legislation seeks to introduce specific measures to counteract these grossly unfair practices and provide greater transparency and fairness for punters.”

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Original URL: https://www.theaustralian.com.au/nation/online-betting-companies-face-campaign-over-hitech-methods-punishing-winning-gamblers/news-story/7e4cad9fc359e4239a6538ac898fba22