Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill, the Anti-Money Laundering and Counter-Terrorism Financing Amendment (Making Gambling Businesses Accountable) Bill 2024, will ensure gambling companies are held accountable for the misery they inflict on thousands of Australians, by preventing them from profiting from illegal behaviour.

Quite simply, the bill puts a positive obligation on gambling companies to report to AUSTRAC if they have reason to suspect a person is paying for a gambling service with money they've obtained illegally.

Where a gambler has paid for a gambling service using funds they did obtain illegally, the bill enables the Federal Court to order the gambling company to compensate the injured party for damage or loss suffered. This will prevent gambling companies from profiting from the misfortune of others, and facilitate a remedy for the victim of the original theft.

Australians continue to be the world's biggest gambling losers per capita. Indeed, according to the latest figures from the Australian Institute of Health and Welfare, Australians lose more than $25 billion each year on gambling.

And it's getting worse, particularly online, with data in the Standing Committee on Social Policy and Legal Affairs report—You win some, you lose more: online gambling and its impacts on those experiencing gambling harmsuggesting that participation of Australians in online gambling increased from 12.6 per cent in 2010-11 to 30.7 per cent in 2019.

Moreover, recent survey findings from the Australian Gambling Research Centre show that around three-quarters, or 73 per cent, of Australian adults gambled at least once in the past 12 months, and almost two in five, or 38 per cent, gambled at least weekly. And, among those who gambled, 46 per cent were classified as being at risk of gambling harm in just the past 12 months.

The figures of gambling addiction are well documented and well known. But it's important not to forget the human impact that gambling addiction has. Indeed I've heard countless stories from people right around the country about the toll it has on people's finances, relationships, employment and mental wellbeing—and in hundreds of cases leading to suicide.

And of course gambling addiction is second only to drug addiction as a reason for crime, which is where this bill comes in.

The bill was developed in consultation with Gavin Fineff, a former financial adviser who defrauded 12 of his clients, stealing amounts ranging from $60,000 to $745,000. In total, Gavin lost $8 million, including $3.3 million of his clients' money, through gambling, and he is now in jail serving a nine-year sentence.

Now, Gavin understands he did the wrong thing and takes full responsibility for his actions. But he is not the only one to blame considering the predatory behaviour of three of Australia's largest betting companies, who cynically exploited Gavin's gambling addiction.

First there was Tabcorp, where Gavin was quickly promoted to VIP status, assigned a personal customer service manager and offered special treatment, including events, experiences and bonus money to bet with.

And no wonder, because Gavin was gambling and losing big time. Indeed, from September 2016 to June 2018, there were 194 times when he deposited $10,000 or more into his TAB account, and 23 times when he made a withdrawal of more than $10,000 from his account, 10 of which were for $50,000. But, as Gavin continued to lose money, and more and more money, rather than offering him support, Tabcorp fuelled his growing addiction with bonus money and tickets to sporting events to encourage his gambling.

And all the while Tabcorp never intervened. They never asked Gavin for proof of funds, never asked for proof of income, and never showed the slightest interest in where all the money was coming from. When they finally did intervene, it was of course too late, and Gavin had lost almost $4 million.

But then, in proof that the industry is systemically and culturally rotten to the core, just three weeks after Tabcorp froze his account, Gavin was contacted out of the blue by representatives from Ladbrokes, who offered to sign him up with a 'superior experience', including thousands of dollars in bonus bets. When Gavin disclosed that his Tabcorp account had been frozen, the Ladbrokes representative facilitated an account under a false name. He was never asked for identification nor, again, asked for any proof of income.

But that wasn't to be the end of it, because then along came BetEasy, which has now merged with and is part of Sportsbet. A few months after signing with Ladbrokes, where he had lost close to $700,000, Gavin was contacted, again out of the blue, by gambling company BetEasy, who set up an account for Gavin and gave him $50,000 in free bonus bets, which he lost within the space of 45 minutes.

Over the next 16 months, Gavin lost approximately $3.6 million with BetEasy. And, again, BetEasy never asked him for proof of income and only checked his identification in the last two months of his gambling with that company.

Which brings me back to this bill, and the undeniable fact that these companies knew, or should have known, that Gavin's gambling was suspicious. Yet they deliberately targeted him for his addiction. That should be a crime.

And what about the victim's money?

Two of the companies have kept all the stolen money they received from Gavin, and one of the companies gave just a portion back to the victims—which is obviously not acceptable, but which is all the evidence we need to show that gambling companies should be required by law to return the stolen money to the victims and that the Federal Court should have the power to order them to do so. Constructively, this is a view shared by several Independent colleagues in the states and territories who are progressing similar bills in their parliaments and assemblies.

In other words, change is coming and the parasites in the gambling industry need to get out of the way, while the Labor, Liberal and National parties need to get on board. Anything less will just go to show how the industry really are parasites, and how the government and opposition really don't give a toss about gambling addiction.

I now invite the member for Mayo, who is seconding this bill—for the third time, I would add—to contribute to the debate in my remaining time.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

Is the motion seconded?

Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

I second the motion. I commend the member for Clark for never giving up on this issue, despite what has often been a very disappointing response from several governments. Australians now lose $32 billion every year—more than any other nation on a per capita basis. Many vulnerable members of our community are now having gambling shoved down their throats through aggressive marketing—and we're not doing anything about that either.

The ABC reported in July 2024 that, before being convicted of stealing $400,000 from her employer to feed her gambling addiction, Carolyn Crawford, age 64, had never had so much as a parking fine. She was jailed for 18 months. Had the operators been required to undertake due diligence, they may have ascertained that her income was insufficient to cover such losses or at least to compensate her employer. Apparently, three-quarters of women in prison with Carolyn are also there as a result of gambling addiction. What a waste!

Existing laws make it an offence to deal with money which a recipient ought reasonably to have suspected to be in the proceeds of crime. However, existing regulators have been slow to use their powers to claw back proceeds of crime from those who benefit. This bill, the Anti-Money Laundering and Counter-Terrorism Financing Amendment (Making Gambling Businesses Accountable) Bill 2024, imposes an obligation on gambling companies to notify AUSTRAC if they suspect a person is paying for a gambling service with money obtained illegally. If they do not, the Federal Court will be able to order the company to compensate for the injured party's loss. That will at least give those harmed some sort of recourse.

We are still waiting for the government to properly respond to the recommendations under what we all know as the Murphy report. Nineteen months after it's handed down, we still appear to be no further. I truly commend the member for Clark on this bill and all the work he has done in this parliament and parliaments before with respect to gambling harm. With gambling companies, we know that they should have known both in the case of Gavin Fineff and the case that I just spoke about that the funds that were being gambled were the proceeds of crime. How come, in every other aspect, we go very hard on those who benefit from the proceeds of crime but we don't seem to do that with gambling companies?

I commend this bill to the House.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.