Have you ever received flyers or glossy brochures for computer gambling systems? Often these systems involve betting on horse racing.

Although the advertising frequently parades the system as an ‘exciting investment opportunity’, in reality these systems are just gambling on horse races, even if the word ‘gambling’ does not appear in the advertising materials.

FIDO supposes that the language of investment and finance is used to make the system seem more professional and scientific and therefore low-risk. However, ‘gambling’ with your savings is usually regarded as a recipe for financial disaster, not financial success.

The promoters should tell the truth. Gambling systems aren’t investments. Horse races are not financial products or services. And for these reasons, computerised horse racing systems generally lie outside ASIC's responsibilities. They really involve sales offers or promotions about consumer goods and services, which are regulated in Australia under the Trade Practices Act and state Fair Trading legislation.

The Australian Consumer and Competition Commission website has a handy brochure which advises that ‘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’.

The site also recommends that you ‘be wary of high pressure and slick sales techniques. Promoters of these products are often highly skilled in selling’.

Visit the website of the ACCC for a copy of the brochure on computerised gambling systems

The Office of Fair Trading in your state or territory may also have information about these systems.

If you hear about or are targeted by one of these scams, contact your state or territory Office of Fair Trading.