Australian bookies face legal response from imprisoned problem gambler

• A financier who was sentenced to nine years in prison due to gambling away stolen funds is now fighting back
• He wants to hold staffers and bookmakers accountable for failing to uphold consumer protection standards
• Any money that could be returned this way would go to the victims of his original crime

Three of Australia’s major sports betting companies, to wit, Sportsbet, Tabcorp, and Entain, are facing legal action after a jailed plaintiff filed a case in the Federal Court against the trio.

The case stems from what former financial planner Gavin Fineff argues is the company’s fault in fueling his gambling addiction and pushing him into crime to sustain his habit.

Fallen-from-grace financier sues back the bookies he argues made it happen

Fineff ended up defrauding 12 people out of AU$3m, which he used to sustain his gambling habit. The man was sentenced in 2023 to nine years in prison, with a parole date set for February 2028.

Fineff is now hoping to recover the millions of dollars he gambled away, which he stole to continue playing, arguing that his behavior did not trigger mandated player consumer standards and protections.

The money, though, will not be granted back to him, but rather be sent back to the victims of his original crime, fueled by his gambling addiction, and as the lawsuit stipulates, the bookmakers and some of the staffers.

Commenting on the case, Matej Novota, Casino Guru's Head of Casino Research, also added: "It will be fascinating to watch the outcome of this trial (assuming a full trial does happen). It could set a precedent for how far bookmakers are held accountable when they let people gamble without sufficient KYC or affordability checks. The case may not hit its intended mark, but it could make operators more careful about their consumer protection measures."

Fineff is not limiting himself to the bookmakers themselves, arguing that the blame ought to be spread out between the entities themselves, as well as specific staffers whom he believes share the blame for his current situation.

Among those are VIP customer manager George Khoury and Steven Bedwell, with both accused of asking Fineff to open new accounts after he stopped gambling. This, the lawsuit argues, pushed Fineff into a further spiral of debt and crime, while none of his actions triggered the mandatory interventions on behalf of the trained staffers.

The case, though, could have many widespread implications. Stories where people resort to desperate measures, such as stealing at an impulse to fund their gambling habits, are not exactly new, as there is a string of white collar professionals who have fallen into that trap.

What is new in Fineff’s lawsuit, however, is challenging the idea that operators and their staffers have no blame to share. Sydney barrister Geoffrey Watson SC spoke to ABC Investigations and argued that the case could be a pivotal moment for how such situations could be viewed in the future.

As Watson SC says, the argument is that the companies were well aware that Fineff had an issue with his gambling, but chose to continue incentivizing him, "knowing" that he would be "liable to pay damages."

No AML and KYC standards applied in time to prevent the worst outcome

"For the industry, if Fineff is successful, it's going to be a very challenging day because it will bring home to them the economic consequences of disobeying their own internal checks and balances," he added.

The case wants to clearly argue that know your customer and AML were not observed in good faith, and had that been the case, Fineff could have spared himself at least some of the issues he faces today.

One bookmaker did ask him for proof of income, but not before he ended up losing about AU$3.9m.

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