Aussie Gambler Avoids Prison in $100K PlayUp Sports Betting Site Fraud

An Australian gambler who bilked online sports betting platform PlayUp out of AU$108,000 (US$68,000) has been spared a prison sentence, Australia’s Daily Telegraph reports.

Sang Ill Lee, 29, was arrested in August and later pleaded guilty to one count of dishonestly obtaining a financial advantage in court. Between May 15 and June 12, Lee deposited funds of up to $30,000 to PlayUp 12 times using the domestic payment processor POLi Payments, according to prosecutors.

But PlayUp only received three of those payments. Lee exploited a loophole in the POLi payments processing system that allowed him to cancel the other transactions after the funds were credited to his gambling account.

“[POLi] allows funds to be available instantly to be used by the client to place wagers … [but if] an individual was to cancel the transactions … wagers could still be placed before the funds are received by PlayUp,” court filings said.

$3M in Debt

Lee spilled the beans to police shortly after his arrest, admitting to using the scheme to con three other sports betting sites. He said he was a compulsive gambler who owed almost $3 million to family, friends, and loan sharks and lived in a constant state of anxiety about his debts.

Magistrate Judge Alexander Mijovich sentenced Lee to a term of imprisonment to be served in the community using an 18-month intensive corrections order. Mijovich also ordered him to complete 200 hours of community service, abstain from all forms of gambling, and pay $108,000 to PlayUp.

Weakness in System

Payments to merchants via POLi are not made in real time. That means funds can be credited to gamblers’ accounts before the payment processor advances the money to the operator, according to FinancialRights.org.au.

A Parliamentary Joint Committee on Corporations and Financial Services recently recommended the federal government develop and implement legislation to ban online gambling operators from accepting these payment methods.