Dennis Craig Telford, the company secretary of K&S Transport, is facing fraud charges for allegedly embezzling the money. But in a decision last week, the South Australia Supreme Court found Sportingbet liable to K&S Transport for £1 million of his debts and £300,000 in costs.
Australia's Number One Betting Shop, acquired by Sportingbet in 2001, accepted telephone bets from Telford, who was described by the court as "having a weakness for slow horses".
The court reasoned that the bets were unusual that that the company knew the source of the funds – and therefore should have rejected the bets.
Sportingbet, a publicly traded company on AIM, part of the London Stock Exchange, said in a statement to investors that it will appeal the ruling. It has also said that it no longer accepts bets from "high rollers".