Sport Betting Scams

Authorities are investigating Queensland's sports betting industry, following allegations scams have ripped more than $4 million from punters.

Fair Trading investigators recently led multi-agency teams that included Queensland police and the Australian Competition and Consumer Commission in door-knocks of almost 40 sports arbitrage companies, mostly on the Gold Coast.

About 650 punters have complained since January last year of losing thousands on complicated betting systems.

Total losses amount to more than $4 million.

Complaints included not being able to contact companies after paying membership fees of between $3,000 and $19,000.

Minister for Fair Trading Peter Lawlor says they often gave false addresses or just a post box address so they can't be traced.

"The companies involved promote that by placing one bet for each outcome with different betting companies it is possible for the client to make a profit," Mr Lawlor said.

"We also found that once these companies start receiving complaints from their clients, they often simply close down and start up again somewhere else under a new name."

He said words such as investment scheme and risk-free were used to lure consumers.

"Investigators have found that many of these gambling scams are now marketing their systems as recession-proof and tax free."

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Dozens of sports betting companies are under investigation for allegedly ripping off about $20 million from hundreds of Australians.

Authorities are investigating sports arbitrage and sports investment scams that involve gambling on sporting events, usually between two teams.

The promoters claim that by placing one bet for each outcome with different betting companies it's possible to guarantee a profit.

The schemes are promoted using betting syndicates, requiring the money to be put into an account, or software packages sold for as much as $19,000.

Queensland's Fair Trading Office and the Australian Competition and Consumer Commission (ACCC) have received more than 650 complaints since January relating to losses totalling more than $4 million.

But the true impact of the scams is believed to be at least $20 million nationally, ACCC deputy chairman Peter Kell says.

Checks of 40 companies, mostly on the Gold Coast, found many of the addresses did not exist and the scammers were using post office boxes to avoid being traced.

Mainly Queensland and NSW punters have fallen victim to the schemes.

Fraud squad Detective Superintendent Brian Hay says criminal investigations are under way into seven companies.

"Many large sums of money are involved and unfortunately a lot of dreams are going to be shattered and lives changed forever," Det Supt Hay said.

"You are not going to get a quick turnaround to the volume that's being quoted by these professional-looking brochures and slick-talking telemarketers.

"It's not one or two people or companies, it's almost like a nefarious and insidious industry that's populated a certain landscape."

He said the scammers faced up to 14 years in jail.

Queensland Fair Trading Minister Peter Lawlor said the scammers used phrases like "investment scheme" and "risk free" to lure punters.

"Investigators have found that many of these gambling scams are now marketing their systems as recession-proof and tax-free," Mr Lawlor said.

Sportingbet Australia spokesman Bill Richmond said if it sounded too good to be true, it probably was.

"It's the age-old scam alert. If (the scammers) were genuinely making that much money off the system, they wouldn't be trying to make it for someone else," he said.

UniTAB spokesman Brad Tamer said the company did not endorse the practice of sports arbitrage, but it was not illegal.

"They're just scraping through our websites - it's open slather, there's nothing we can do to stop it," he said.

However, he stressed there was no relationship between any sports arbitrage company and UniTAB.

Mr Tamer said the company referred all queries about joining such schemes to the Office of Fair Trading.