Australian bookies warned about third-party accounts

Northern Territory-licensed bookmakers have been urged to review their terms and conditions to help mitigate the rise in customers selling access to their betting accounts to third parties.

Several outfits have emerged in recent years, offering betting companies’ customers one-off cash payments in exchange for access to their accounts.

It is believed the marketing efforts of one of these, Cavalry Accounts, caught the attention of the Northern Territory Racing and Wagering Commission (NTRWC), for its use of Facebook to promote the sale of betting accounts to it as a third party.

Earlier this month, the NTRWC reminded licensees of the importance of remaining vigilant to any third-party activity that seeks to obtain, use or control customer betting accounts. 

It also noted that other organisations or individuals may be engaging in similar practices.

There is nothing expressly illegal about the practice of selling access to betting accounts and The Straight is not suggesting that Cavalry Accounts is engaging in anything illegal or nefarious.

However, many wagering operators’ terms and conditions prohibit third parties from using accounts.  

All NT-licensed bookmakers have been urged to review their terms and conditions

The Commission also reminded bookmakers that it is the responsibility of licensees to ensure ongoing monitoring of customer behaviour, promotional activity, and account usage patterns to “identify potential indicators of third-party involvement”.

But it also cautioned that any action taken must be supported by evidence and be consistent with the licensee’s terms and conditions and regulatory obligations.

That comes after anecdotal reports that the number of punters whose accounts have been blocked is rising, with suspected third-party use often cited as a reason.

Some punters opt to use third parties, or bowlers, to place their bets as they have been restricted from betting on their own accounts.

As discussed by The Straight in October, there is also evidence that some services offer to set up third-party bank accounts on behalf of users.

The Australian Banking Association issued a warning to the public in June last year not to rent or sell access to their bank accounts for cash, with the Australian Federal Police saying the act of using “mule accounts” was illegal.

“Doing so supports the criminal ecosystem,” AFP Detective Superintendent Marie Andersson said. “Your account may be housing money derived from scams, extortion, drug trafficking and terrorism.”

For bookmakers, the use of third-party accounts could be a breach of their anti-money laundering and counter-terrorism financing obligations under the financial crimes regulator AUSTRAC.

AUSTRAC issued guidance on the use of third-party betting to bookmakers in September last year.

Some new bookmakers have reported that they suspect up to 10 per cent of their accounts are being operated by third parties, but few are resourced to tackle the problem.