Gambling Online Guide

Consumer and anti-gambling advocates flagged legal activity within hours of the product being revealed at the bank’s total-year profit announcement in Brisbane yesterday, as revealed exclusively by brisbanetimes.com.au today. Independent Senator Nick Xenophon, who staunchly opposes gambling, also spoke out about the account today. Mr Xenophon said he would prosecute authorities to enlighten why the product was approved and he intended to bring up the issue in Senate Estimates next week. The Win Account, to be premiered on November 15, will be the first 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 present about 4.5 per cent. Customers will be lured to the Win Account on the chance they can win the $20,000 1st 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 make a ticket in the lottery. But a customer who deposits $1000 into the account stands to lose about $35 per year in interest. Customer groups GetUp! and Choice, which are already pursuing class activity against 12 banks for what it claims are dishonest charges, have mooted equivalent action against Bank of Queensland.

Choice spokesman Christopher Zinn said the account was “irresponsible” and would incite gambling, while GetUp! described it as an “immoral” banking practice. The Salvation Army’s head of difficulty gambling services, Gerard Byrne, said the product was improbable to impact existent problem gamblers, who mostly did not save money. Still, it would potentially propel new gamblers. Mr Liddy said yesterday the bank had created 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 securely in a bank and being potentially rewarded … you’re not putting your money at risk at all,” Mr Liddy said. “It’s a atypical account that will appeal to some people and some it won’t. We’re not trying to dictate to people what they do, people will make that selection. “All our market study and the behaviour of the product in other markets suggests certain people will love it, others won’t touch it.”

Finance with No Monthly Charging And No Minimum Balance Required. Apply now! Australia’s banking regulator says it had no knowledge of the Bank of Queensland’s controversial fresh 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 encouraging gambling because it requires customers to forego an average 3.5 per cent in annual interest for the chance to win $20,000 a month. In defending the account yesterday, Bank of Queensland (BoQ) chief executive David Liddy said the company had been through two years of examination and been approved by the Australian Prudential Regulation Authority, as well as and state drawing commissions.

Advertisement: Article continues below But an APRA spokesperson said the regulator had only learned about the product yesterday. It had not approved the account, nor was it required to. BoQ chief operating officer Ram Kangatharan was forced to defend his boss, who was on a flight when the revelation was made. Mr Kangatharan apologised and said Mr Liddy had been wrong. Nevertheless, he said the account had been granted the go ahead by the important state and territory drawing commissions, who regulated savings accounts with trade promotions. “We can pretty much go ahead with it,” Mr Kangatharan said.