Gambling Online Guide

Bank with No Monthly Charges And No Minimum Balance Required. Sign up right away! Australia’s banking regulator says it had no knowledge of the Bank of Queensland’s racey new savings account that offers tickets in a monthly lottery rather than a better interest rate, despite claims it had approved it. The account has been criticized for supporting gambling because it requires customers to waive an average 3.5 per cent in annual interest for the possibility to win $20,000 a month. In defending the account yesterday, Bank of Queensland (BoQ) chief executive David Liddy said the company had gone through two years of scrutiny and been accepted by the Australian Prudential Regulation Authority, as well as and state lottery commissions.

Advertizement: Story continues under But an APRA spokesperson said the regulator had just learned about the product yesterday. It had not accepted the account, nor was it mandatory to. BoQ chief operating officer Ram Kangatharan was forced to defended his chief, who was on a airplane when the revelation was made. Mr Kangatharan apologized and said Mr Liddy had been mistaken. However, he said the account had been given the go ahead by the significant state and territory lottery commissions, who regulated savings accounts with trade promotions. “We can pretty much go ahead with it,” Mr Kangatharan said.

Customer and anti-gambling advocates flagged legal action within hours of the product being revealed at the bank’s full-year profit proclamation in Brisbane yesterday, as revealed only by brisbanetimes.com.au today. Independent Senator Nick Xenophon, who staunchly opposes gambling, likewise spoke out about the account today. Mr Xenophon said he would follow authorities to clarify why the product was approved and he intended to raise the issue in Senate Estimates next week. The Win Account, to be launched on November 15, will be the start of its variety in Australia and is based on parallel products in New Zealand.

It has few fees and offers an annual interest rate of 1 per cent, compared to most other savings accounts that bid about 4.5 per cent. Customers will be lured to the Win Account on the chance they can win the $20,000 first prize in a monthly lottery, with an opening total prize pool of $30,000. When a minimum $250 is deposited, every dollar in the account will earn a ticket in the lottery. But a client who deposits $1000 into the account stands to go down about $35 per year in interest. Customer groups GetUp! and Choice, that are already pursuing class action versus 12 banks for what it claims are illegal fees, have mooted similar action against Bank of Queensland.

Choice spokesman Christopher Zinn said the account was “unreliable” and would propel gambling, while GetUp! described it as an “unethical” banking practice. The Salvation Army’s head of difficulty gambling services, Gerard Byrne, said the product was not likely to influence existent problem gamblers, who typically did not save money. Nevertheless, it would ultimately prompt new gamblers. Mr Liddy said yesterday the bank had made the account because it was ineffective to offer competitive interest rates compared to the large four. He opposed suggestions it would promote gaming. “It’s not gambling. You’re putting your money carefully in a bank and being eventually rewarded … you’re not putting your money at jeopardy at all,” Mr Liddy said. “It’s a unusual account that will appeal to some people and some it won’t. We’re not trying to order to people what they do, people will make that choice. “All our market inquiry and the behaviour of the merchandise in other markets suggests some people will enjoy it, others won’t touch it.”