Unbelievable that people are so stupid. Its no wonder these people never have money and then suck on the Public Tit when they retire.
Early access super 'gambled away online' Michael RoddanSenior companies reporter
May 20, 2020 – 5.09pm
Superannuation savings taken out in the government’s early release program have been frittered away by punters on gambling sites and online wagering, sparking calls to clamp down on the wagering sector during the coronavirus pandemic.
According to sources familiar with bank transaction data, who spoke on the condition of anonymity, there have been numerous instances where workers have vaporised up to $10,000 on online gambling apps after receiving a lump sum under the early access program.
“We saw someone take out the whole $10,000 amount on Thursday and by Monday they had none left,” the industry source said. “From their records, we could see they’d never been a gambler before.”
Drawdowns under the hardship scheme are closing in on $15 billion, following applications to unlock up to $10,000 before the end of the financial year by more than 1.5 million members.
While the problem is not believed to be widespread, financial sector groups have raised concerns at industry meetings about a significant spike in gambling during the economic shutdown designed to stop the spread of COVID-19.
This includes the Australian Finance Industry Association, which covers the major and regional lenders, credit providers, alternative finance providers, and buy now, pay later firms.
Spending data from economic consultancy AlphaBeta revealed a 114 per cent increase in online gambling transactions during the pandemic.
Although problem gamblers have benefited from a loss of access to poker machines during the lockdown, overseas jurisdictions have taken a harder line than Australia towards online gambling companies during the crisis.
In recent weeks, the UK Gambling Commission forced companies to alert customers following an hour of gaming after finding a spike in online wagering, Sweden put in place bet limits and caps on losses for online gamers, and Spain banned online gambling advertising.
Lauren Levin, director of policy and campaigns at Financial Counselling Australia, said early access lump sums and the broader suite of COVID-19 welfare payments were being targeted by online gaming companies. Such companies are largely untouched by gambling regulation in Australia, which is generally applied by state governments.
Ms Levin said online wagering now draws in a broader slice of the public, including university-educated people and middle Australia.
“The problem with a lump sum is that you can spend it all at once. It is often arriving at the same time as extreme boredom and isolation,” Ms Levin said.
“With the pokies shut, there is a group of people who are relieved they no longer have to battle their pokies demons. But another group of people have been drawn onto online gambling platforms for the first time. A third group has increased their online gambling activity.”
“The online gambling industry has become more aggressive in its marketing and they're often texting people with inducements. Meanwhile, online games, or 'social casinos', spruiked on sites such as Facebook, have led to some clients losing hundreds of thousands of dollars.”
“These online games seem innocuous but the outcomes are not innocuous,” Ms Levin said.
Separately, the Australian Securities and Investments Commission on Wednesday said it was concerned some financial advisers were exploiting the pandemic as part of a pitch to carry out broader superannuation services, such as early release, searching for lost super or consolidating accounts – all free services offered by the MyGov portal.
“ASIC has already seen some ‘lost super search providers’ re-brand as ‘COVID-19 access providers’. This is an area we will be monitoring closely for misconduct,” ASIC senior superannuation executive Jane Ecclestone said.
“ASIC supports appropriate consolidation, with many consumers able to locate their lost super and save fees by carrying out the search and consolidation process. However, some financial advisers and superannuation trustees are leveraging this for their own benefit, without considering what is best for the member or the client,” she said.
