Landmark Federal Court Case Tests Accountability of Australia’s Online Betting Industry

A major Federal Court action has been launched that could reshape how Australia’s online wagering companies operate and how they handle high-value customers. Former financial planner Gavin Fineff, who is currently serving a nine-year prison sentence for defrauding clients, is taking Sportsbet, Tabcorp, and Entain to court to recover millions in stolen funds gambled through their platforms.

The case argues that the companies failed to investigate the source of Fineff’s funds and continued to encourage significant betting activity despite clear indicators of financial risk and escalating behaviour. Two former VIP managers are also named in the action, accused of facilitating his betting activity by offering incentives and failing to act on warning signs.

A Test of Industry Responsibilities

Fineff’s case centres on whether major Australian betting sites fulfilled their obligations under customer due diligence rules, including monitoring unusual betting patterns and verifying the source of funds. Although Fineff earned roughly AU$130,000 per year, he placed bets totalling tens of millions of dollars. His losses exceeded AU$4.3 million across Ladbrokes and BetEasy alone, yet the activity continued with minimal intervention.

Regulators have previously sanctioned BetEasy and Entain for failing to recognise problem-gambling indicators in Fineff’s accounts. Investigations revealed that VIP staff used bonuses, hospitality, and other inducements to re-engage him after periods of inactivity, despite company records showing awareness of earlier substantial losses.

Victims, Not the Gambler, Stand to Benefit

If the lawsuit succeeds, Fineff will not profit from any recovery. Instead, the funds would go towards compensating the 12 victims he defrauded, several of whom lost life savings. Families affected by the crimes have expressed ongoing frustration, noting that even a favourable ruling cannot undo the financial hardship and loss created by Fineff’s actions.

Spotlight on VIP Programs

The case is expected to draw significant attention to the VIP culture inside Australia’s online betting sector. VIP programs assign account managers to high-value customers, with some staff historically receiving commissions tied to gamblers' losses. These structures have long been criticised for disincentivising intervention when a customer shows clear signs of harm.

Industry changes have been introduced in recent years. Sportsbet and Tabcorp have removed commission-based remuneration, while Entain has not publicly commented on the issue. However, the court action may prompt broader scrutiny of incentive systems, responsible-gambling protocols, and how operators monitor risky behaviour.

Broader Reform Could Follow

Legal experts advising Fineff’s team argue the outcome could trigger widespread reform across the industry. A ruling against the betting companies may force operators to overhaul compliance processes, enforce stricter intervention mechanisms, and reassess the financial incentives offered to VIP managers.

Lawmakers have also taken an interest in the case. Several MPs have previously attempted to legislate the return of stolen funds held by gambling operators, arguing that victims should not rely on lengthy civil processes to seek restitution.

What Comes Next

The Federal Court will now determine whether the operators bear partial responsibility for allowing Fineff’s gambling to escalate unchecked. The decision has the potential to set a national precedent, influencing not just how online bookmakers handle high-risk customers but how they document interactions, monitor large transactions, and manage the VIP systems that remain a central revenue source for the industry.