Jailed Financist Sues Australian Operators to Recover Betting Losses

Former financial planner Gavin Fineff is taking legal action against three Australian betting companies, Sportsbet, Tabcorp, and Entain, in an effort to recover the millions he stole from clients and subsequently lost through gambling.

Fineff Sues Three Betting Companies in Unprecedented Case

Right now, Fineff is serving a nine-year prison sentence for defrauding 12 people of more than AUD $3 million (about $1.9 million) and using the money to fuel his gambling addiction. However, according to him, the bookmakers urged him to keep placing large bets without properly verifying where his money came from or whether he might be obtaining funds illegally to support his multimillion-dollar gambling habit.

Fineff is also taking legal action against two former VIP customer managers, George Khoury and Steven Bedwell. He said that they encouraged him to open new betting accounts after he had stopped gambling and then supported his irresponsible betting while overlooking clear warning signs.

Fineff’s situation isn’t the only recent case where a financier has been found guilty of embezzling clients’ money to use in gambling. Earlier this month, former accountant Andrew Marshall was jailed for six years for taking over AUD 4 million ($2.66 million) from clients to fuel his growing gambling addiction.

The Case Could Offer New Insight into the Operation of VIP Programs

This latest lawsuit is expected to scrutinize the role of VIP customer managers within Australia’s online betting industry and how they are rewarded. VIP managers are assigned to high-value gamblers to keep them engaged. They cultivate close relationships with these customers, contacting them frequently and offering incentives. These include free bonus bets, deposit matches, event tickets, and corporate hospitality. VIP punters are extremely profitable for betting companies. AUSTRAC, the money-laundering regulator, has previously estimated that 65% of Entain’s revenue comes from just 2% of its customers.

Previously, regulators have sanctioned BetEasy and Entain for not detecting warning signs of problem gambling in Fineff’s betting activity. VIP managers allegedly tried to draw him back after periods of inactivity by offering bonus bets, hospitality perks, and cash incentives. Internal documents referenced in regulatory inquiries indicate the managers knew about his earlier multimillion-dollar losses.

Fineff will contend that his former VIP managers, Khoury and Bedwell, profited directly from his losses via commissions and actively contributed to the escalation of those losses. A successful ruling may require betting operators to reform their compliance frameworks, strengthen due diligence obligations, and revise VIP practices, as well as deliver long-overdue compensation to their victims.

Interestingly, there was recently a somewhat similar case in the UK in which a property magnate, Lee Gibson, tried to sue Betfair to recover almost $2 million in lost funds, alleging the company did not recognize he had a gambling problem. 

MP Supports Fineff’s Cause

On three occasions, MP Andrew Wilkie has sought to introduce federal legislation compelling betting operators to surrender the proceeds of crime. Similar bills, designed to require gambling companies to return stolen funds, have been introduced by independents in both NSW and Tasmania, though none have been enacted. 

Mr Wilkie worked with Fineff during the drafting process, saying that he was quite impressed by his efforts to make amends. “He did a terrible thing. He stole millions of dollars, and he knows that and he’s deeply sorry for it,” Wilkie said.