Australian Gambling Groups Pay AU$400 for IDs, Raising Concerns

It is not uncommon for bookmakers to restrict the accounts of bettors who are constantly winning. At the same time, some betting companies provide major incentives until a certain timeframe in order to engage with new customers.

However, a practice that is picking up speed in Australia is raising concerns among bookmakers and regulators alike, while offering lucrative opportunities to people who want to earn easily a couple of hundred dollars.

Bowler Accounts Enable Seasoned Bettors to Continue Gambling Without Restrictions

The activity, known as “bowler accounts,” revolves around using new accounts by seasoned gamblers. Those new accounts usually belong to people who haven’t gambled before, enabling seasoned bettors to benefit from different incentives such as welcome offers and betting bonuses.

However, in order to provide the seasoned gambler access to a new betting account, people need to agree to deliver their personal data, such as driver’s license, passport, bank information and even Medicare details in some cases. Not unexpectedly, a photo or a selfie belonging to the person is required for registration too. In exchange for those details, gambling syndicates are offering up to AU$400 ($260) per person, as announced by The Guardian.

Interestingly, such syndicates on Facebook promise that the true owner of the betting account will gain access in approximately six months or after the incentives have been discontinued. In some cases, the true owners may be given access back once a restriction is imposed on their account. Such restrictions are not uncommon and may ban seasoned gamblers from wagering above a specific threshold, often because of frequent wins and high wagers.

A gambling syndicate explained: “We use a strategy called arbitrage betting, where we exploit market inefficiencies and mispriced odds created by competition among bookmakers.” They acknowledged that betting companies aren’t pleased with such practices which is why new accounts are required by seasoned bettors.

The Malpractice Skips AML, KYC Regulations

While the use of bowler accounts can bring a quick buck to some people and enable seasoned bettors to win big by benefitting from non-restricted accounts, the activity raises concerns among regulators and betting companies alike. On one side, the activity is recognized as malpractice by sportsbooks as it circumvents know-your-customer (KYC) and anti-money laundering (AML) policies.

This creates a risk for betting companies which may be used for money laundering. However, it is challenging for such accounts to be identified considering that one person may agree to deliver all of his details to a third party which then uses this information. While it is not impossible for such accounts to be identified, often this happens once they are handed to the original owner and many betting transactions are already completed.

Besides breaching KYC and AML policies, the activity also creates a risk for the people who agree to provide their sensitive data. Such individuals may become victims of identity theft, the regulators warn.