‘Punting plunge’: Sportsbet ‘let accountant burn millions’

Sportsbet claims it demands punters prove evidence of their wealth, but an Aussie accountant was allowed to burn millions.

Sam Kilkenny lost $8 million on Sportsbet, PointsBet and Ladbrokes betting accounts before he self excluded. Picture: Supplie

Sportsbet allowed an accountant to burn through millions despite claiming it has “game changing real time intervention” to stop problem gambling.

Sam Kilkenny torched $8 million on Sportsbet, PointsBet and Ladbrokes betting accounts before he self excluded.

At least $4 million of that punting plunge was lost to Sportsbet who told a Federal Parliamentary inquiry this year it demanded punters “provide evidence of their source of wealth.”

Mr Kilkenny had re-mortgaged his house and investment property, borrowed money from friends and drawn down a loan from his horse racing company First Light Racing as he chased his losses.

First Light Racing, which has horses with trainers Gai Waterhouse and Ciaron Maher, insisted no clients funds were involved, but confirmed it had “discovered accounting inconsistencies” in July.

He was also dumped by his accounting firm Willis Partners, based in Collins Street, Melbourne, who said he “acted outside the values and standards we uphold as a firm”.

Sam Kilkenny lost $8 million on Sportsbet, PointsBet and Ladbrokes betting accounts before he self excluded.

Mr Kilkenny has broken his silence this week, saying he did not know the exact amount he lost but it was between “$7 and $8 million”.

“I have let down people very close to me; family, friends, colleagues,” Mr Kilkenny said.

“Along with my own money and other borrowed funds, my director’s loan account at First Light Racing was also used to fund gambling.

“Thankfully FLR have stated their business operations remain strong but I do not deny there is money I need to repay to a number of people including FLR, and that is something I am presently working very hard on doing to make things right.”

He said Willis Partners was “an excellent and reputable firm with great values” and “respected their decision to end my employment.”

Mr Kilkenny had been a large punter, but his gambling spiralled out of control shortly after Easter as his debts mounted.

Sportsbet had also showered him with meet and greets with Chicago Bulls star Scottie Pippen, and exclusive tickets to the September Club at the AFL Grand Final last year.

PointsBet secured him $3000 tickets to the Ashes at Lords and Royal Ascot races in England because he was a valued customer and events with celebrity golfer Paige Spiranac.

But despite having long term records of his gambling, none of the companies cut him off when he began losing millions, with a frantically increased frequency of betting.

Trainer Gai Waterhouse.

Mr Kilkenny declined to comment on the gambling companies actions, saying: “That’s a question for them. I can only comment on my behaviour which has been disappointing.”

Sportsbet and Ladbrokes declined to comment about Mr Kilkenny’s accounts, citing privacy reasons.

Andrew Catterall, PointsBet’s chief executive, did not return calls or text messages.

However, a Sportsbet staffer told the Federal Parliament in April last year that “we go above and beyond proactively” to stop problem gambling.

“For many years Sportsbet has pioneered innovative data led approaches to consumer protection,” the staffer told the inquiry into gambling advertising.

“We recently launched real-time intervention, which we believe is a world first in harm prevention. This uses artificial intelligence to identify risk, triggering safer gambling interventions before a transaction occurs.”

Sportsbet also claimed it used 100 points of data to check for indicators of problem gambling, with action taken within “15 minutes” of unusual bets being placed.

Gambling accounts from Ladbrokes showed Mr Kilkenny turned over $12 million between May and June this year, losing more than $1 million on that account.

Ladbrokes contacted him on June 4 to raise concerns about his spending, saying his account was suspended, according to an email.

But he was still allowed to turnover $1.8 million that month.

Mr Kilkenny owes First Light Racing up to $1 million, while he has been selling off assets amid a relationship breakdown.

However, it is likely he will be forced into bankruptcy, where his trustees may seek to take legal action against the betting companies to recover some, or all, of his losses to pay creditors.

Trainer Ciaron Maher.

First Light Racing has absorbed the losses they blamed on Mr Kilkenny and were expected to take legal action against his accounting firm who signed off on their books.

The syndicate company, which coordinates training fees for horse owners, paid all trainers bills and have found new investors to continue the business.

First Light Racing said it became aware of some potential accounting inconsistencies in July.

“Further investigations caused First Light Racing to immediately end our association with our external accountants and that firm’s partner Sam Kilkenny, who was also a director of our racing syndicate at the time,” the company said in a statement.

“First Light Racing has subsequently learned of other individuals and companies who have taken similar action against that accounting firm.

“There is no impact to First Light Racing clients or client funds. The business is strong and we’re looking forward to a great spring racing season.”

Willis Partners, which has been operating since 2008, was previously the registered address for First Light Racing, has been in damage control since Mr Kilkenny departed in July.

The company had a prepared statement when contacted this week.

“It is with great disappointment that we address the recent allegations involving a former partner who has acted outside the values and standards we uphold as a firm,” Willis Partners’ statement said.

“We want to make it unequivocally clear that Willis Partners is not involved in anything related to these allegations.

“The actions of our former partner Sam Kilkenny relate to his private business interests and private arrangements and he was removed from our firm in July 2024.”

Originally published as ‘Punting plunge’: Sportsbet ‘let accountant burn millions’