SCAMwatch is warning consumers that sports ‘investment’ schemes are just another form of gambling and are often outright scams. Don’t be fooled by the sales spin—they are a fast way to lose your money.
These schemes are also known as sports arbitrage, sports betting, sports wagering, sports tipping and sports trading and are marketed as a risk-free way to increase your wealth. Salespeople claim that they have techniques to capitalise on different odds offered by different bookies and present graphs showing extraordinary returns.
The schemes usually involve purchasing prediction software or entering into a betting syndicate and sometimes include a subscription to a tipping service.
The ACCC receives numerous complaints about these schemes. Common stories are that:
the software isn’t delivered or doesn’t work
money disappears from betting accounts without any bets being laid on your behalf
money cannot be withdrawn from the syndicate
the betting tips are taken from public sources like local newspapers
the company aggressively demands more money
the company cannot be contacted about problems or refunds.
These claims of extraordinary returns sound too good to be true because they are!
Ask yourself: If these systems produce a guaranteed, risk-free profit, why is the company selling the scheme instead of simply using it to make millions themselves?