Offshore bookmaker Betjack investigated over alleged unpaid winnings

Racing authorities have launched an investigation into allegations offshore bookmaker Betjack is failing to pay punters their winnings.

The move comes as Betjack, based in tropical tax haven Vanuatu, gears up ahead of the spring racing carnival by hiring more sales staff for its Australian call centre, located on the Gold Coast.

Fairfax Media can reveal that although Betjack is licensed overseas, it has an Australian bank account with Westpac into which some punters are told to pay their initial deposits.

Offering bets to Australians from overseas is illegal, attracting a fine of up to $340,000 a day, and offshore bookmakers do not pay Australian tax or licence fees to racing and other sports.

Bernard Saundry,the chief executive of Racing Victoria which is conducting the investigation, called on the federal government to take action against Betjack and other offshore operators.

“They are parasites who have been paying no returns to the Victorian racing industry for the use of our product, nor are they complying with our integrity requirements as approved wagering operators are obligated to do through information sharing and compliance,” Mr Saundry said.

Punters are lured to Betjack through cold calling and the offer of free bets of up to $5000 – which is illegal in Victoria.

However, winners complain that withdrawing their money is slow or impossible.

It is believed punters at a Melbourne golf club are allegedly owed amounts of up to $150,000, which they have been trying to recover without success for a year.

Another punter allegedly lodged $50,000 in his Betjack account, which after a winning streak swelled to $250,000. Unable to withdraw the whole amount, he was eventually paid back his original $50,000 and told never to bet with Betjack again.

Complaints of slow or non-payment on internet betting forums date back to last year.

“I too fell for the cold call and the promise of great odds and a matched deposit,” one gambler said in May 31 post.

When asked for the winnings in late April, Betjack gave “one dodgy excuse after another about why they can’t pay”, the poster said.

Mr Saundry said Racing Victoria had previously heard allegations of “unsuspecting punters being unable to withdraw funds from an unapproved offshore bookmaker like Betjack”.

 “Punters electing to bet with unapproved offshore bookmakers are not only transacting with a business, which is breaking the law, but they may risk doing their money cold,” he said.

Fairfax Media can reveal that Gold Coast-based company Parkview Corporate Services (PCS), controlled by St Kilda man Jeffrey Myles Kemp, is linked to Betjack and holds accounts with Westpac and ANZ.

It is believed a woman named Ruth Sullivan is listed as a contact person on the account. Domain name records list a “Ruth Sullivan” as registering a number of websites, including  betjack-sports.betting-com, which link to the main Betjack website.

PCS went on a hiring binge last month, seeking telemarketers with a background in racing, the stockmarket or futures trading.

“A Wolf on Wall Street wanted,” PCS said in an ad posted late last month.

“Are you money hungry? Are you ready to lead the pack? Top sales guns required, immediate start, hot leads, untapped earning potential.”

Mr Kemp and Ms Sullivan could not be reached at the number given in the job ad.

The chief executive of POLi Payments, Jeffery McCalister, confirmed his company provided internet payment services to Betjack.

“We’ve got a contract with them. They don’t do significant business with us, but nonetheless they do have an Australian bank account,” he said.

He said he had no evidence that Betjack was operating illegally.

“We have no knowledge at this time,” he said.

Mr McCalister said PCS took over operation of Betjack’s Australian bank account in August last year from another Australian company, Betjack Pty Ltd.

This is about the same time the group restructured its onshore arm. Company documents show ownership of Betjack Pty Ltd was transferred from Queensland man Jamie Radcliffe to Papua New Guinea-born John Chan, of Port Vila, Vanuatu, and his wife Edna, from Sydney’s northern suburbs.

Betjack Pty Ltd, which Fairfax Media has learnt also held a bank account with Westpac, was wound up in February this year.

According to racing industry sources, Mr Chan is the “Jack” in Betjack and holds the licence in Vanuatu.

Edna Chan told Fairfax Media she knew nothing about Betjack. She said her husband was overseas and could not be contacted. Mr Chan could not be reached by telephone at Betjack, which has an Australian 1800 number, and Betjack did not respond to emails.

A spokesman for the Vanuatu Department of Customs and Inland Revenue, which regulates internet bookmakers in the South Pacific island state, said Betjack was “a registered licensee with a valid license to operate an I-Gaming [bookmaker] business”.

He confirmed that the license was held by Vanuatu company Butterscotch Holdings (Vanuatu).

“However for now, the owner’s identity is withheld given the confidentiality provisions of the Act, but may be disclosed if authorised by the courts,” he said.