Financial Bodies Call For Ban on Unsolicited Credit To Punters

Financial Counselling AustraliaInternational body of financial counsellors has called for a ban of unsolicited credit to punters by sports betting agencies as there is a surge of problem gamblers in recent years. Of late, there have been cases of gamblers seeking financial assistance to place online bets as betting agencies are extending credit to them at inflated interest rates. As this is an unregulated industry, people seeking unsolicited credit to place bets are being induced to let go of payouts if they do not place bets on teams selected by the betting agencies. There have been reports that these lending agencies are stealing financial credit details of these individuals and harassing them.

Arguments against unsolicited credit

In a report submitted by Financial Counselling Australia, the sports betting industry is feeding the habit of problem gambling and giving rise to unscrupulous lenders that are misusing the natural greed of gamblers to win. The report stated that bookmakers should comply with regular credit laws and extend loans to punters that are financially capable of returning the cash whether they win or lose. The report also suggested asking the government to issue a ban on advertisements that link sports betting sites to payday lenders. Since growth of smartphones and legalization of online gambling along with sports betting, there has been a spurt in betting site advertisements during league matches.

Disturbing trends in sports betting industry

An investigation carried out by ABC Radio stated that in recent years gambling clinics in both Melbourne and Sydney have witnessed a growth in the number of clients seeking help in controlling sports betting. Ad spend of betting agencies has increased nearly four times between 2010 and 2014 which shows that the market of sports betting is quite huge. Though evidence shows that only 2.3 percent of Australians bet on sports compared to 52 percent gambling on poker machines, several people have reported how sports betting companies keeping calling them to offer extra credit or free bets for certain cash limits.