A 23-year-old man has been arrested in Sydney for running an AU$ 2 million ($1.3 million) online gambling scam that police say defrauded 14 victims.
New South Wales police began investigating the case in 2023 after reports of the scam emerged. Following the investigation, the man, who has not been identified, was arrested at Bankstown Police Station in Sydney on Tuesday.
A report on the New South Wales police website stated that, “He was charged with 11 counts of dishonestly obtain financial advantage by deception, two counts of make false document to obtain financial advantage and one count of demand with menaces/intend to obtain gain advantage.”
He appeared in court on Wednesday and was denied bail due to the severity of the charges. He remains in police custody awaiting a committal hearing that will decide whether there is enough evidence to proceed to a trial. Given the charges, he could face upwards of 10 years in prison if convicted.
ACMA warns of gambling scams
The Australian Communications and Media Authority (ACMA) issued a warning of increasing incidents where fake gambling platforms are used to exploit victims under the promise of fast profits. The warning came amid a crackdown on illegal betting sites at the end of last year.
The ACMA received over 300 complaints between October and December 2024, leading to an investigation of 16 different gambling sites. As a result, 75 URLs were blocked in the country. Since 2019, the organization has blocked 1,117 illegal gambling and affiliate sites.
The regulator also keeps tabs on Australia’s legal betting sites and has issued fines to several operators over noncompliance with advertising laws and rules around BetStop, the country’s gambling self-exclusion list.
Australia gambling laws
Through the Interactive Gambling Act 2001 (IGA), real-money casino gambling is banned for Australian residents. However, the law does not prohibit dual-currency platforms such as sweepstakes casinos.
Both VGW and Stake were founded by Australians, Laurence Escalante and Ed Craven. VGW is operational in the country, although Stake is blocked. The company is hoping to enter the Australian market in the near future and is in the process of applying for a license.
Australians gamble more than any other nation in the world, with average losses of over $1,000 a year. This is higher than the US at $547 and New Zealand ($394).
Other recent gambling-related cases include a 48-year-old man who was sentenced to more than five years in prison after he stole AUD 700,000 ($457,000) from his parents to gamble online.
Additionally, a 68-year-old Victorian woman was jailed for a minimum of three years for embezzling more than AUD 4 million ($2.61 million) from her employer to fund gambling sessions as well as luxury vacations.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
