Computerised gambling systems are software that promise to accurately predict results, usually of horse races, other sports or even share market movements.
The horse racing software scams tend to say that the predictions are based on weather conditions, the state of the horse, the draw or the condition of the jockey. They also claim to track the money that may have been placed on a race by professional betters.
There are legitimate software programs to help people monitor share prices, but the scammers will go further and claim that their software can accurately predict movements in share prices.
Scammers can charge a lot of money for this software, ranging from around $1000 up to $15 000 or even more. For your money you may get equipment like calculators, a program on a disk, a newsletter subscription or a whole computer system. No-one can guarantee that you will make money through betting.
The software promises huge returns based on past results and trends. However, once purchased the systems do not work as promised and buyers can’t get their money back.
The usual approach is through advertisements presenting such systems as business opportunities or investments (approaches are also made by unsolicited emails, letters or phone calls). Often professional people or those getting close to retirement are targeted.
Don’t be enticed by reported past performance or examples, as the results can easily be manipulated. Ask yourself: 'Why would someone sell me a system that can guarantee a profit?’ and ‘How can a machine predict a gambling result where luck is involved?’.
Be on the look out for ongoing costs. Many systems require you to open a betting or trading account and maintain a minimum balance. If the prediction you rely on is not correct, you have to keep pumping money into the account.
Be wary of high pressure and slick sales techniques. Promoters of these products are often highly skilled in selling.
If you still think that the product sounds like it could work, seek independent advice from a solicitor or financial adviser about the viability of the product and the purchase contract/terms and conditions. ‘Money-back guarantees’ may have strings attached.
Avoid get-rich-quick pushers. Higher returns mean higher risks. And if it sounds too good to be true, you’ll end up the loser. The promoter will be the only winner.
If you are not interested in the betting software you are offered, simply hang up the phone, ignore the ad or delete the email.
Schemes of this nature should be viewed for what they are—high-risk schemes. If you cannot afford to lose the money, definitely do not buy.
If you are interested, seek an independent professional opinion on the software before making any decision to go further.
Read the guarantee carefully before signing any documents or paying any money. Ask about the refund and guarantee policy. Do not sign or pay upfront if they won’t provide all the terms and conditions or you are not completely satisfied.
If you have been misled or deceived into buying computer prediction software, you can report it through SCAMwatch. You should also spread the word to your friends and family to protect them.
Download our Sports investment scams fact sheet for more information on sports arbitrage, sports betting, sports wagering, sports tipping or sports trading. These terms are often used to promote sport investment scams.
Victim story: Alan was pressured into buying software that promised him huge returns from betting on the horses. The software didn’t work and the only winner was the scammer.
Unsolicited phone calls pushing high-return and high-risk investments, often in overseas markets. The callers sound professional but are not licensed in Australia.
Spam email or strange phone messages that urge you to buy shares in a thinly-traded company. The scammers wait until their victims invest before selling their own stock at a profit.
High-pressure sales in high-risk investment strategies. Scammers profit through attendance fees and by selling property and investments at inflated prices.
You are offered early access to your superannuation (‘early release’), often through a self-managed super fund. The scammers take a large part of your super for themselves, and put you at risk for accessing your super in an illegal way.