Australian Consumer Groups and Regulatory Issues: Rewards Clubs Face Scrutiny, KPMG CEO Resigns

A review of recent business and regulatory developments in Australia reveals two distinct stories: concerns over the operation of rewards clubs under trade promotion permits, and a leadership change at KPMG Australia. Separately, Victorian authorities are acting against influencers who promote poker machines.

Rewards Clubs and Regulatory Concerns

More than 80 rewards clubs in Australia operate by charging customers a monthly subscription for entries into prize draws for cars, houses, and cash. These clubs collectively state they have given away over $220 million in prizes.

The industry operates under trade promotion permits, which are intended to promote a product or service, not as a product itself. Gambling licenses are described as costly and difficult to obtain, while trade promotion permits cost approximately $500 annually. These permits require that free entry into draws be available.

Rewards clubs offer various prizes, including luxury goods, hunting equipment, and construction machinery.

In New South Wales, trade promotions constitute over 80% of gaming-related complaints to the Department of Fair Trading. Over 60 complaints were received in the last financial year. A New South Wales minister has expressed concern about the increase in complaints.

• RS Rewards had its permit cancelled in March 2025 after 29 breaches of the law, but continued to run draws.
• LMCT+, which has operated for nearly 10 years, was fined $40,000 in March for running an unlawful lottery.
• Age verification is generally absent, allowing individuals under 18 to sign up, though they are ineligible to win.

Andreas Fung, Director of Trade Promotions and Lotteries, stated that these operations are either gambling or charity raffles, not legal giveaways.

• Lawyer Emma Tiberi noted that regulators face challenges in proving businesses are not conducting a genuine promotion.
• Senator David Pocock called for stronger regulation, citing that Australians are the largest per capita gambling losers.
• Expert Kei Sakata warned of a lack of transparency, absence of self-exclusion tools, and potential consumer harm.

Adrian Portelli (known as "Lambo Guy"), founder of LMCT+, stated his company aims for genuine value but supports stricter laws. He described competitors as "cowboys."

The ABC identified that many subscribers enter draws with the hope of paying off debts or medical bills.

KPMG Australia CEO Resignation

Andrew Yates, CEO of KPMG Australia, resigned on Friday following a whistleblower scandal. The firm acknowledged that its initial investigation into the allegations "fell short of the firm's expectations." A KPMG forensic risk services director had posted advice on LinkedIn regarding whistleblower protections shortly before Yates' resignation.

Victoria: Political Meetings and Poker Machine Regulation

• On February 5, Victoria Premier Jacinta Allan met with broadcaster Carrie Bickmore (representing Beanies 4 Brain Cancer).
• On February 24, Sport Minister Steve Dimopoulos met podcaster Daniel Gorringe (representing a partner media business).

Victoria's Gambling and Casino Control Commission is enforcing regulations against influencers who promote poker machines, which is illegal. Offenders face fines exceeding $24,000. The commission cited a rise in content that glorifies gambling.