Sportingbet Australia has recovered AU$2.68 million after settling a legal case involving a customer who embezzled from his employer in 2001 and then gambled the sum with Sportingbet Australia.
The customer's employer was successful in obtaining $2.68 million--representing the element of funds gambled with Sportingbet Australia while it operated onshore--from Sportingbet Australia in 2003, which provided for the cost as an exceptional charge in its accounts for the year ended March 31, 2003. Sportinbet Australia then appealed the ruling.
In a separate but related action, the employer attempted to recover a further sum of $8.5 million--representing the element of funds gambled while Sportingbet Australia operated offshore in Vanuatu. Sportingbet Australia has now announced that it has reached an agreement whereby both cases have been dropped, and it will recover the $2.68 million paid in 2003.
Meanwhile, the company recently filed an appeal in Australia's Supreme Court challenging a magistrate's finding that the company's advertisement in a Gosford race book was illegal. Although Sportingbet Australia was found guilty, the magistrate did not fine the company or record a conviction; it instead placed it on a 12-month good behavior bond.
"The reason we are testing this is someone has to stand up to this draconian legislation, which prevents not only us but any bookmaker based outside NSW from advertising in this state, along with sponsorship of any kind," Sportingbet Australia CEO Michael Sullivan said. "When they talk about corporate bookmakers not putting anything back into racing--which is what we want to do via sponsorship--we are prevented from doing so and we ask why?"