Melbourne sports betting agency staff claim the managers deliberately misled regulators.
STAFF of a Melbourne sports betting agency have claimed the company's managers deliberately misled regulators as it spiralled towards liquidation last month.
Almost 13,000 punters stand to lose up to $3.2 million after Sports Alive, which is registered in Canberra but based in Melbourne, appointed liquidators on August 25. The figure includes $2.6 million in payouts not made to winners as well as $600,000 held in ''wagered open bets'' - money held by the agency for punters placing long-term wagers, for example a bet at the beginning of the AFL season on who will win the AFL grand final.
Liquidator Hamish MacKinnon of Bent & Cougle said agency staff were also owed $300,000 in unpaid superannuation and the $250,000 the company was required by law to hold as a buffer was funded by a loan from Bank of Queensland.
Company records show that, two days before the liquidation, two Melbourne directors of Sports Alive, racing identity Danny Finley and lawyer Colin Hiles, suddenly quit the board. Mr MacKinnon also said that around the time of the liquidation, a loan by Mr Finley to the company was taken over by another finance group.
Mr Hiles could not be contacted, Mr Finley did not return calls, and neither did his business partner and former Sports Alive director Gary Gray. Sports Alive chief executive Stephen Chant also did not return calls.
Mr MacKinnon said the company had made losses in the past two years, and he was investigating whether the company had been illegally trading while insolvent.
Alex Bailey, who ran the company's Canberra call centre, said that long before the liquidator came in customers were not being paid their winnings.
''At the end, people had been waiting up to six weeks ? I had clients threatening to come in to the racecourse to cut my f---ing legs off and slit my f---ing throat,'' Mr Bailey said.
Even though no money was being transferred to punters' bank accounts, staff have confirmed that company managers were falsely marking customers' betting accounts as ''paid''.
Mr Bailey said he believed this was being done to trick the ACT regulator, the Gambling and Racing Commission.
Three other staff members, speaking anonymously, have backed Mr Bailey's stories.
A Gambling and Racing Commission spokesman said the commission was ''undertaking inquiries in relation to Sports Alive at the time it went into liquidation'', but could make no further comment.
The company was at one stage a takeover target for government betting agency Tote Tasmania, which looks to have lost its $3.88 million investment.
Tote chief executive Craig Coleman said he regretted the investment. ''I don't know that there was any campaign of hiding things, I certainly wouldn't go that far, but I do have concerns about management practices.''
Frequently Asked Questions about this Article…
What happened in the Sports Alive liquidation and why did the company appoint liquidators?
Sports Alive, a Canberra‑registered but Melbourne‑based sports betting agency, appointed liquidators on August 25 after making losses over the past two years. Company records show two Melbourne directors quit two days before liquidation, and the liquidator is investigating whether the business was illegally trading while insolvent.
How many punters are affected by the Sports Alive collapse and how much money is at risk?
Almost 13,000 punters stand to lose up to about $3.2 million. That figure includes roughly $2.6 million in unpaid payouts to winners and about $600,000 held in 'wagered open bets' such as long‑term bets placed at the start of a season.
Were customers receiving their winnings before Sports Alive went into liquidation?
Staff say customers were not being paid and that some punters waited up to six weeks for payouts. Employees have also alleged managers were falsely marking accounts as 'paid' despite no money being transferred to customers' bank accounts.
Have staff alleged that Sports Alive misled regulators or customers?
Yes. Multiple staff, including the Canberra call centre manager, claimed company managers deliberately misled regulators by marking betting accounts as 'paid' when funds were not actually transferred. Three other staff members, speaking anonymously, backed those claims.
What has the Gambling and Racing Commission said about the Sports Alive situation?
A Gambling and Racing Commission spokesman said the commission was 'undertaking inquiries in relation to Sports Alive at the time it went into liquidation' but could make no further comment in the article.
Were Sports Alive employees owed money when the company collapsed?
Yes. The liquidator reported that staff were owed about $300,000 in unpaid superannuation. The liquidator also noted a $250,000 buffer the company was required to hold had been funded by a loan from the Bank of Queensland.
Did any other businesses lose money because of Sports Alive’s problems?
Tote Tasmania appears to have lost a $3.88 million investment in Sports Alive. Tote's chief executive expressed regret about the investment and said he had concerns about management practices.
What is the liquidator investigating and what might that mean for affected punters and creditors?
Liquidator Hamish MacKinnon is investigating whether Sports Alive illegally traded while insolvent and examining company records such as director resignations and loan arrangements (including a loan originally from director Danny Finley that was taken over by another finance group). The outcome of those investigations will determine creditor recoveries, but the article does not report any final recovery figures.
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