Major Australian wagering companies Sportsbet and Tabcorp have issued a firm rejection of testimony presented to a federal inquiry alleging that their account managers provided illicit substances and sex workers to high-stakes gamblers. The denials follow explosive claims made during a parliamentary hearing focused on proposed legislation to restrict gambling advertising across the country.
The inquiry, which is examining the Labor government’s efforts to curb the pervasive reach of betting promotions, heard testimony from prominent anti-gambling advocates and former industry insiders. These witnesses described a culture of aggressive "VIP" management where vulnerable individuals were allegedly enticed with illegal incentives to maintain their betting activity.
Allegations of Misconduct in VIP Gambling Programs
The allegations centered on the conduct of VIP account managers, whose roles involve maintaining relationships with the industry’s most profitable clients. Tim Costello, a leading anti-gambling campaigner, and Luke Bateman, a former professional athlete and social media influencer, provided the committee with accounts of extreme measures used to keep "whales"—high-value gamblers—active on betting platforms.
Bateman testified that while attending a private event on the Gold Coast hosted by a gambling firm, he witnessed senior company figures consuming illicit drugs alongside clients. He alleged that the provision of cocaine and alcohol was used as a tool to foster an environment conducive to reckless wagering. Bateman told the inquiry that these companies frequently exercised no duty of care toward customers who were clearly struggling with addiction.
Adding to the gravity of the claims, Costello informed the committee that he is currently assisting a gambling addict who is preparing to plead guilty to the theft of millions of dollars. According to Costello, this individual was regularly offered drugs, escorts, and complimentary luxury accommodation by betting representatives to ensure they continued to wager despite their mounting financial and legal crises.
Sportsbet and Tabcorp Deny Allegations Regarding Illicit Incentives
Representatives from the accused companies appeared before the inquiry on Tuesday to refute the claims. Jules Norton Selzer, the director of corporate affairs for Sportsbet, stated that the company has found no evidence to substantiate the allegations. He characterized the described behavior as "deplorable" and insisted that Sportsbet maintains a policy of zero tolerance toward illegal activity.
"We have no tolerance for that kind of conduct," Norton Selzer told the committee. He emphasized that the company had not been provided with specific details or evidence beyond the testimony heard on Monday but welcomed any information that would allow for a formal internal investigation. He further stated that Sportsbet’s objective is to provide a safe and responsible product for adult customers while supporting federal and state regulatory frameworks.
Julian Whealing, the head of government affairs for Tabcorp, echoed these sentiments. He told the inquiry that the provision of illicit drugs and sex workers was fundamentally not part of the company’s customer offering. Whealing positioned Tabcorp as the most heavily regulated wagering company in Australia, asserting that the firm takes its compliance responsibilities with the utmost seriousness.
"Any evidence of this illegal activity should be referred to the relevant authorities," Whealing said. He noted that Tabcorp employs approximately 20 VIP account managers to service a select group of about 400 high-value clients, out of a total active customer base of 800,000. Sportsbet reportedly maintains a similar ratio of VIP staff to high-stakes bettors.
Scrutiny of Marketing Tactics and Underage Exposure
The inquiry also shifted its focus to the marketing strategies employed by the industry, particularly those that may influence minors. Independent Senator David Pocock questioned Responsible Wagering Australia, the industry’s primary lobby group, regarding a specific promotion run by the platform Bet365.
Pocock raised concerns about a community running race where children as young as 12 were reportedly dressed in Bet365-branded apparel. The incident was cited as an example of how gambling branding has become embedded in community sports, potentially desensitizing youth to the risks associated with wagering.
Kai Cantwell, the chief executive of Responsible Wagering Australia, admitted that the industry "may be on thin ice" regarding public sentiment. He acknowledged that the industry has not always met community expectations and stated that companies are working to act more quickly when marketing efforts are found to be inappropriate. Cantwell noted that the industry has been evolving its practices over the last five years in response to growing criticism over advertising saturation.
Political Fallout and the Push for Reform
The testimony has sent shockwaves through the Australian political landscape, with senior officials describing the accounts as "appalling" and "disturbing." Acting Prime Minister Richard Marles addressed the inquiry’s findings, stating that the government is committed to reaching a balance between the industry’s economic presence and the need for stringent consumer protections.
"Certainly the evidence that was given tells an appalling story," Marles said. He defended the government’s proposed reforms, calling them the toughest set of gambling advertising regulations the country has ever seen. The Labor government is currently facing pressure from both anti-gambling advocates, who want a total ban on ads, and the media and sporting industries, which rely heavily on gambling revenue.
Jane Hume, the deputy leader of the Liberal party, described the allegations of targeting vulnerable people as deeply concerning. While the Coalition has not yet finalized its position on the pending legislation, Hume indicated that the opposition would await the committee’s final recommendations before deciding on its support for the bill. She emphasized that protecting Australia’s most vulnerable citizens must be the priority in any legislative outcome.
The Economic and Social Impact of VIP Betting
The focus on VIP clients highlights a significant aspect of the gambling industry’s revenue model. In Australia, a small fraction of gamblers—often referred to as VIPs or high-rollers—contributes a disproportionate share of total wagering losses. This economic reality creates an inherent tension between a company’s fiduciary duty to its shareholders and its regulatory duty of care to its customers.
Industry analysts note that VIP account managers are often incentivized based on the "turnover" or total volume of bets placed by their assigned clients. Critics argue that this commission-based structure encourages managers to ignore red flags of problem gambling, such as sudden increases in betting frequency or the use of stolen funds.
The allegations that Sportsbet and Tabcorp deny suggest a breakdown in the ethical boundaries of these relationships. If proven, the use of illegal substances and services to maintain betting activity would represent a severe breach of Australian gaming licenses and could lead to significant fines or the revocation of operating permits.
Public Health Concerns and Gambling Addiction
Australia has one of the highest rates of gambling losses per capita in the world, a statistic that has fueled the current push for reform. Public health experts have long argued that gambling addiction should be treated with the same level of regulatory scrutiny as tobacco or alcohol.
The inquiry has brought to light the devastating personal consequences of unchecked gambling. The case mentioned by Tim Costello involving the theft of millions of dollars is not an isolated incident; several high-profile court cases in recent years have involved employees embezzling funds to fuel addictions on major betting platforms.
Advocates argue that the "gamification" of sports and the constant barrage of digital advertisements have created a "normalization" of gambling among young people. The Bet365 branding of children’s race participants served as a visual flashpoint for this argument during the Senate hearing, reinforcing the call for a total separation of gambling brands from youth-oriented activities.
Next Steps for the Inquiry and Legislation
As the inquiry continues, the committee is expected to call for more detailed records from the wagering companies regarding their VIP management protocols and internal disciplinary actions. The demand for transparency is high, as lawmakers seek to determine if the alleged misconduct was the result of "rogue" employees or a systemic failure within the corporate culture.
The federal government’s legislation remains a point of intense negotiation. While the current proposal seeks to limit the volume and timing of ads, a growing chorus of crossbench senators and public health groups is demanding a "blanket ban" similar to the restrictions placed on tobacco advertising decades ago.
The denials from Sportsbet and Tabcorp have set the stage for a protracted legal and political battle. While the companies maintain their innocence and emphasize their commitment to responsible gambling, the "shocking" testimony provided to the Senate has significantly increased the momentum for a radical overhaul of the Australian wagering industry. The final report from the committee will likely serve as the blueprint for the next generation of gambling regulation in the country.
