Flutter faces fresh legal challenge as Victorian woman sues Sportsbet over stolen funds
Table of contents
- Kym Cavigan is suing Flutter Entertainment’s Sportsbet after her accountant used £280,000 of her savings to gamble on the platform
- The case highlights concerns about due diligence and anti-money laundering practices in Australia’s betting industry
- Andrew Marshall has pleaded guilty to stealing nearly AU$4.2 million from multiple clients to fund his gambling addiction
Flutter Entertainment’s Australian flagship brand Sportsbet faces a new legal challenge after a Victorian woman launched action over deposits made with stolen funds. The case comes as Australia’s gambling industry faces mounting pressure over regulatory compliance and consumer protection.
Kym Cavigan, a 53-year-old Victorian resident, is suing Sportsbet after her accountant Andrew Marshall admitted to gambling away AU$820,000 of her life savings on the platform.
Marshall allegedly transferred Cavigan’s money between bank accounts before crediting his Sportsbet betting account, leading to charges of stealing nearly AU$4.2 million from multiple clients.
Accountant’s confession
Cavigan discovered the theft in 2023 when Marshall visited her and confessed to “dipping into client accounts – including hers – to pay for his Sportsbet wagers”. The accountant has since pleaded guilty to multiple charges and is expected to appear in court in November.
“It’s not their money, and they should have known that the money they are profiting from was stolen from us,” Cavigan stated. The case argues that Sportsbet had an obligation to ensure proper checks were in place to prevent the use of misappropriated money.
Marshall is now assisting his former victim by providing bank statements, texts, and documentation to support her potential lawsuit against Sportsbet.
Compliance under scrutiny
The lawsuit draws attention to questions about due diligence and compliance obligations in Australia’s gaming sector, particularly regarding know-your-customer (KYC) and anti-money laundering (AML) practices. The case arrives as rival operator Entain, owner of Ladbrokes Australia and Neds, faces investigation over potential breaches of AML obligations.
The timing coincides with renewed political focus on gambling reform in Australia. Progress on implementing the 31 recommendations from the Murphy Report, a comprehensive parliamentary inquiry into gambling’s social effects, has stalled despite widespread support.
Several MPs, including Andrew Wilke and Kate Chaney, have criticised the government’s lack of movement on reform. Wilke described Australia’s gambling regulation as “a national disgrace” and accused the government of ignoring expert evidence and community sentiment.
This latest case adds to Sportsbet’s legal challenges, including an ongoing class action lawsuit over its “Fast Code” service for live betting, which plaintiffs argue violates Australian gambling laws by circumventing telephone-only requirements for in-play wagers. The company has also faced penalties for targeting self-excluded players and spamming customers who tried to unsubscribe from marketing messages.
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