Jailed Gambler in Australia Files Lawsuit Against Major Betting Companies to Recover Stolen Losses

A former financial planner, jailed for stealing and then gambling away clients’ money, has filed a federal lawsuit against three major betting companies, seeking to recover his losses.

In what has been described as a landmark case, Gavin Fineff is suing Sportsbet, Tabcorp, and Entain (owner of Ladbrokes). Fineff received a nine-year prison sentence in 2023 for stealing just over AU$3 million (around $2 million).

He alleges the bookmakers encouraged him to keep betting large sums of money without carrying out proper checks into the source of his funds or whether he could be engaging in illegal behaviour to fund his multimillion-dollar gambling habit.

At the time, he was earning only AU$130,000 per year, and claims the companies should have easily spotted he was gambling far beyond his means. In total, he claims to have lost over AU$8 million ($5.32 million).

A new study from the Australian Gambling Research Centre (AGRC) has shown that gambling participation and harm have increased across the country. Australians are already the world’s biggest gamblers, losing an average of AU$1,200 ($780) per year. In the U.S., it is estimated that gamblers lose around $500 per year.

VIP Hosts Targeted Fineff With Bonuses

Rather than stop Fineff from gambling, the companies assigned VIP hosts who incentivized him to open new betting accounts after he had stopped. He named two VIP hosts, George Khoury and Steven Bedwell, in the lawsuit.

Khoury was his VIP host at BetEasy, now part of Sportsbet, before moving to Tabcorp. Fineff says in 17 months, he lost more than AU$3.6 million on the platform (which merged with Sportsbet in 2020) after placing about AU$50 million in bets. 

After switching companies, Fineff says Khoury targeted him with bonus bets, encouraging him to open a Tabcorp account. He says Tabcorp did ask him for proof of income, but only after he had lost $3.9 million.

Bedwell was his VIP host at Ladbrokes, part of the Entain group. Fineff says he also encouraged him to keep gambling, using bonuses and incentives to exacerbate his problem. He claims to have lost more than $750,000 with Ladbrokes in 21 months. 

Companies Fined Over Fineff Case

The Northern Territory Racing Commission, which regulates almost all online betting companies in Australia, found Ladbrokes offered Fineff bonuses worth AU$528,890 (around $350,000). In 2023, it fined the company $78,540 over its failures to stop Fineff’s problem gambling.

In its judgment, the regulator stated, “Right from the earliest moments of its first interaction with the gambler, Ladbrokes appears to have not given due attention to whether the gambler could afford to gamble to the levels that he was.”

BetEasy was also fined $79,390 for three breaches of its licence over its dealings with Fineff.

High-spending users often generate the bulk of betting companies’ revenues. The money laundering regulator AUSTRAC has previously estimated that 65% of Entain’s revenue comes from just 2% of its customers.

VIP hosts are incentivized to maximize user losses. Some hosts reportedly have commissions as high as 20% on net losses. In the UK, new regulations surrounding VIP schemes have led to a reduction in the revenue generated from high-value customers. The regulator reported that in 2024, VIP customer programs accounted for only 3% of the overall revenue of 12 betting companies.

Victims: Lawsuit is Pot Calling Kettle Black

If the lawsuit is successful, then betting companies will be forced to pay back the victims that Fineff stole from. However, some have said it will not undo the damage he has done.

One victim, Joy Williams, died at the age of 87, and her daughter says she was left destitute by Fineff’s theft. She has little sympathy for Fineff, who says he was targeted because of a gambling addiction.

Talking to ABC News, she stated, “Gavin suing the betting companies is blatantly the pot calling the kettle black. His actions are not going to bring my mother Joy Williams back, who died destitute at 87 years of age.”

She added, “Gavin preyed on the elderly. His actions were calculated and well thought through. Most of his victims were in their later years, and their lives have been changed irrevocably because they are unable to earn back what Gavin stole.”

At the same time, she also blamed the betting companies, adding, “It’s a very sorry industry, and to bonus employees, to get people to gamble more is particularly shattering. The effects on families of those who gamble is devastating and long-reaching.” 

Does This Case Stand a Chance?

Lawyer Geoffrey Watson, who has advised Fineff’s legal team, says the case could lead to reform of what he believes is a predatory industry.

“This is a landmark case. If this is successful, it will change the gambling industry in Australia a great deal,” he stated. “The argument will be that the betting companies were well and truly aware of Mr. Fineff’s weakness, his vulnerability, and yet they continued to prey upon that same weakness, getting him to gamble more and more and lose more and more, and that it was their knowing action in facilitating that which has made them liable to pay damages.”

There have been other similar cases brought against betting companies, alleging that VIP hosts encouraged problem gamblers to incur massive losses.

In the US, Amit Patel, a Jacksonville Jaguars finance manager, gambled away almost $21 million in stolen funds on FanDuel and DraftKings. FanDuel initially claimed the money was theirs, stating, “The way they see it … we got this money fair and clear. It’s not our problem that we have to forfeit it back to you.”

Eventually, however, the company agreed to pay back $5 million of the $20 million in stolen funds that Patel had gambled away.

In the UK, a judge ruled against a gambler who sought to recover losses from betting exchange Betfair. Lee Gibson similarly claimed that VIP hosts should have stopped him from gambling, but instead encouraged him to lose £1.5 million (around $2 million).

This week, an appeals court upheld the initial judge’s ruling, confirming that it believes Gibson, not Betfair, was responsible for his gambling. In the ruling, a judge said there was “no justification for allowing the appeal against the conclusion that Betfair neither knew nor ought to have known that Mr. Gibson was a problem gambler.”

Fineff Calls for Stricter Rules on Gambling Ads

There have been growing calls for stricter rules around gambling advertising in Australia. The country already prohibits gambling adverts from being shown on live sports during daytime, but opponents have urged for a complete ban at all times.

Fineff has also urged Australian Prime Minister Anthony Albanese to implement stronger measures against gambling companies. Last year, he wrote a letter calling for reform.

In the letter, which he sent to parliament, he stated, “The gambling companies know they are cultivating and exploiting addictions like the one I had. It’s part of their unspoken business model. This has to stop before even more innocent people are harmed.”