BlueBet Holdings Ltd

ASX:BBT

BlueBet Holdings Ltd

ASX:BBT
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Forum Topics BBT BBT Money and Misery

Pinned straw:
Scoonie
Added 3 months ago


This week ABC 4 Corners investigated the murky world of Strata Managers and the shady dealings of ASX stalwart Steadfast (ASX: SDF) and until recently ASX market favourite Johns Lyng Group (ASX: JLG).  Essentially both firms appear to be using their ownership of Strata Manager businesses to sell inflated maintenance works and insurance policies.  

Four Corners: Series 2024 The Strata Trap : ABC iview

What did not get as much publicity was a story on the same channel exposing the misery of corporate sponsored gambling, specifically focusing in on the ASX listed online gambling business BlueBet (ASX:BBT ) and Sportsbet (owned by the LSE listed Flutter Entertainment).  

VIP managers, shocking fraud, stolen millions: Inside the harrowing crimes of 'The Golden Goose' - ABC News

The above tells the story of three salt-of-the-earth brothers who own and run an earthmoving company in Queensland.  The three Gurney brothers all loved being on the tools and left the running of the financial side business to a family “friend” by the name of Mr Paul Montgomery.  Mr Montgomery repaid the favour by ripping the business off to the tune of around $11.5m over a period of 10 years .Mr Montgomery had a gambling problem and was for a time in the top 5% of Australian gamblers. Montgomery was caught and is now living in the big house stamping out number plates.  


The other part of the story of Montgomery’s fraud and gambling problem is how both Sportsbet and the ASX listed Bluebet encouraged it and also broke the law.    The likes of Sportsbet and Bluebet employ usually ex sports stars as “VIP Managers”.

It is the task of these “VIP Managers” to identify, befriend and encourage punters to gamble using their company’s betting platforms.  In the above case ex Wallaby and NRL player Duncan McRae working for Bluebet  attached himself to the wretched Mr Montgomery.   The ABC obtained a contract between one of these ‘VIP Managers” and Sportsbet. The terms of the agreement indicated as the “VIP Manager”  they would receive 20% of the net losses of the identified gambler for the first 12 months and 5% in subsequent months.

Betting agencies are required under the legislation to obtain “proof of income” from the identified gambler to ensure the gambler is using their own financial resources, and not proceeds of crime. In the case of Mr Montgomery it appears this check was not done by either Sportsbet or Bluebet.  None of the ill-gotten gains accrued by the betting agencies has been returned to the Gurney brothers.

                                                                                                                                                                

Just think for a minute about the morals you would need to possess to be one of these “VIP Managers”.   You take the typically problem gambler to the sporting event, buy them beer, joke with them, act as if you are their best mate and then gee them up to gamble. Not only just gamble, but you are incentivized for them to gamble and lose.   All the while laughing, backslapping them and generally stroking their ego.  It would take a particularly egregious subset of societies’ shitbags to undertake such a role. 

Or you could say in the above case it represented a coming together of two highly defective human beings, Paul Montgomery and Duncan McRae. Some might say the injustice is only one of them went to jail.

 Unfortunately, there seems to be any number of people willing to behave in this way.  In the wider gambling sphere just look at what has emerged at Crown Casino and more recently Star Entertainment. From Nick Xenophon to Andrew Wilkie to Tim Costello all have had a go at cleaning it up, with only very limited success.  

JLG and SDF each issued to the market their best rebuttal statement.  Both were pathetic cliché riddled crap, the usual:: “…..we take very seriously our obligations ...blah blah …”. Documents useful only to line the bottom of budgie cages.   

Bluebet did not issue any statement to the market concerning the ABC report.   I guess that tells you what Bluebet think of the ABC, the gambling regulator and the Australin public. 
mikebrisy
Added 3 months ago

@Scoonie I don’t really engage with gambling (beyond buying the cheapest Powerball entry when the jackpot hits $100m, and being a $JIN shareholder), but over the last week I’ve also heard terrible stories of gambling addicts who try to reform, but who get pulled back in succumbing to advertising. While I have no doubt that for the majority who engage in gambling, it is harmless fun, there is a significant segment here who suffer serious harm. In some of my volunteering work, for example, I occasionally come across vulnerable people with multiple addictions, and gambling is sometimes one that can get them into all kinds of trouble, including siphoning off a decent share of their welfare income!

I think there is evidence that Australia is the worst country globally for harmful gambling losses, and I am at a loss as to why, when faced with the evidence, there has been so little reform. Is it the power of the lobby or the ignorance of the electorate or both?

Coming back to insurance, I’ve had two jobs quoted on my house over the last decade. When for one, I said I’d pay for it personally and not on insurance (given my high excess), the price went from $4,000-odd to $2,000. It was such a natural and easy conversation I put it down to standard operating procedure.

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lowway
Added 3 months ago

Thanks @Scoonie for the report on the 4corners show. I had heard about the strata managers and the companies that were feeding off that all over the press, but not the gambling episode. I will have do check out iview when I get a chance.

Like @mikebrisy I've got a couple of stocks tied to gambling (TLC & TAH). Might be time to reassess those holdings as well, even though they been kind to me over the years.

Also like @mikebrisy I'm not the right mark for gambling companies and it seems kind of pointless to me unless it's for a free drink after a round of golf!!

The sad news is the following snippet from the internet:

Australia has the highest gambling losses per capita of any country in the world. Last year, Australians gambled away approximately $25bn (That is now almost $1,000 per person, incl. children, per year). We have less than 0.5% of the world's population, but almost 20% of its poker machines.

And with all that massive money transfer going on, here's Star Casinos in Brissie trying to negotiate a tax deferral with the State Govt in order to keep their newly opened Queen's Wharf facility open. And let's not forget how dependent both Federal and State economies are now on gambling taxes, so how will change ever be truly implemented?

What a world we live in

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Dangles
Added 3 months ago

Funnily enough I met one of these VIP managers through friends recently. He told me that he never wanted to know any details about the punters he was entertaining as it was usually too depressing. Definitely a role that you'd struggle to sleep well at night with.

In terms of advertising, the biggest issue with reform is that the gambling advertising spend is now a major source of revenue for traditional Australian media and also Australian professional sporting leagues and clubs. Both of which have an outsized influence on politics due to their cultural power and ability to affect public perceptions.

So the best of intentions with restricting advertising and limiting losses quickly get watered down when they face these very powerful lobbies / executives.

Personally as someone who loves a bet, I'm protective of my rights to enjoy a responsible wager, but also freely admit that the advertising situation is completely out of hand.

From an investing point-of-view, it's hard to see a bull case for TAH at the moment, given the increased scrutiny and pressures. However some of the stories I'm hearing out of the US market continue to astound me. It feels like they're in a similar position to the Australian market of 15 years ago, when Sportsbet & Sportingbet were going hell for leather with $1,000+ account inducements. The race for market share over there is wild and will eventually lead to increased regulation as well I expect.

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