Gambling company offers $25,000 conditions to a Melbourne man who withdrew complaints to regulators and assumes responsibility for "adverse media" | Australian News

A Melbourne man said he offered $25,000 to a gambling company on condition that he withdrew his complaints to industry regulators, agreed to confidentiality provisions and compensation, including adverse media reports.

Gordon Burns, 23, argued that his 2022 craze bets with two dealers showed "continuous addictive behavior" and claimed that no one at any company had signed in to check for gambling injuries.

Burns filed a complaint with the Northern Territory Racing and Betting Commission (NTRWC), which investigated most of Australia's online gambling companies, and he also accused no one of them of checking the source of their funds.

The committee asked bookmakers to “identify and respond to red flag behavior” to indicate that someone may experience gambling injuries. These red flags include someone increasing the amount and frequency of their deposits.

Burns was 21 years old when he was gambling with Betnation and Betdeluxe. Transaction data shows that he deposited $10,000, $25,000 and $35,000 in eight minutes. Later that same day, he donated three deposits worth $120,000 in 17 minutes.

Shortly after filing a complaint with regulators in mid-March 2024, Burns received WhatsApp news from representatives of Maused Group, the parent company of the two dealerships.

"Do you have a free call now?" the news said. “I want to discuss the settlement agreement for your account.”

When Burns asked how the deputies found his phone number, he was told someone from the regulator to share with them.

In the months after gambling, Betdeluxe and Betnation acquired the Entertainment Group in March 2023, amusing that they did not receive Burns’ account or “any liability related to the business prior to that date”.

After the acquisition, Burns said he received the offer From the amusing group, he settled his claim for $25,000 and made an offer to him under the former owner because he withdrew the complaint at the end of the day and agreed not to file any complaints with the NTRWC or any other regulator.

He also said the gambling company told him that the agreement and financial offer would be invalid if the complaint continues to be supervised.

He said he was told he needed to provide compensation to the company from all claims regarding the subject of the dispute, including any adverse media.

An interesting group spokesperson did not comment on the specific allegations made by Burns or “due to confidentiality and privacy considerations.” But they said the group “takes all customer complaints seriously and handles everything under applicable law.”

Stephanie Tonkin, CEO of the Center for Consumer Action Law, said conditional settlement negotiations are common in many industries, but said attention they can be used to "silence victims and avoid scrutiny."

"I think (they) should be used in limited circumstances and complaints to regulators should not be blocked," Tokin said.

Lauren Levin, who has spent decades studying the harms of the gambling industry, said: “In most cases, the provision of fast cash is overwhelming in tough financial situations.”

A spokesperson for the optimistic group said: "Confidentiality regulations are standard in many industries to provide finality and protect dispute privacy for all parties".

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"They are not trying to silence individuals or avoid regulatory oversight," the spokesperson said. "In fact, such regulations often promote the resolution of complex and sensitive issues without a prolonged confrontation process.

“The interesting group remains committed to transparency, accountability and fair treatment for all clients.”

The company also said it is “committed to responsible gambling and customer well-being” and has “a dedicated team, system and policy to help identify and respond to potential gambling injuries metrics.”

An interesting spokesperson said: “We have invested heavily in responsible gambling measures and believe that our commitment in this area will be comparable to any other operator in the market.”

Burns argued that Betnation and Betdeluxe should do more to protect him, and he did not withdraw the complaint because he hoped that regulators would investigate why, in his opinion, “so many red flags were ignored.”

"That $25,000 might help me, but it won't help the next pain I suffer," Burns said.

Burns did not accept the settlement offer and said his complaint was still ahead of the NTRWC.

A spokesman for the regulator said in a statement that the company is usually a settlement provided by gambling companies. But they said that this did not automatically stop its investigation into serious charges.

"When the Committee received a recommendation from the parties regarding the confidential solution to the complaint and withdraws the complaint, the Committee conducted an assessment to determine whether the subject of the complaint was serious enough to ensure investigation and disciplinary action," the spokesperson said.

“In many cases, the Commission has disciplinary action against the licensee after the complaint is dropped.”