Sportsbet and Tabcorp deny allegations they sourced drugs and sex workers to encourage VIP clients to bet more
Australia's two biggest wagering firms, Sportsbet and Tabcorp, told a Senate inquiry there is no evidence to support claims that account managers supplied drugs, alcohol and escorts to high-roller clients.
Intelligence analysis by Llama
Anti-gambling campaigners Tim Costello and former betting influencer Luke Bateman told a parliamentary hearing that vulnerable gamblers were plied with cocaine, alcohol and sex workers. Sportsbet and Tabcorp's executives flatly denied the claims, calling for evidence to be handed to regulators. The testimony lands as Labor pushes its long-tabled gambling advertising reform bill.
Two big Australian betting companies told parliament they never gave drugs or escorts to rich gamblers, even though some people said the companies did that to keep big bettors playing. The inquiry is also looking at a new law that would limit gambling ads on TV and online.
Analysis
Denials Amid Senate Scrutiny
The parliamentary inquiry into Labor's gambling advertising bill became a venue for extraordinary claims this week when anti-gambling campaigner Tim Costello and former book influencer Luke Bateman alleged that betting companies had supplied vulnerable clients with cocaine, alcohol and escorts to keep them wagering. Costello said he was helping a gambling addict facing theft charges who had been offered drugs, escorts and free accommodation, while Bateman described a private Gold Coast event he attended where senior company figures allegedly took illicit drugs with clients. Both Sportsbet and Tabcorp used their Tuesday appearance to repudiate the allegations, with Sportsbet's director of corporate affairs Jules Norton Selzer telling senators the company had "zero evidence" of the conduct and would "gladly investigate" any specifics. Tabcorp's Julian Whealing was equally emphatic, calling the alleged behaviour outside the company's customer offering and urging anyone with evidence to refer it to authorities.
A Reform Bill Under Pressure
The testimony lands in the middle of a politically charged debate over how far Australia's federal government should go in restricting gambling advertising. Acting Prime Minister Richard Marles called the evidence "quite shocking" and an "appalling story," framing the inquiry as the foundation for what he described as the toughest set of gambling reforms the country has attempted. Deputy Liberal leader Jane Hume was more measured but still labelled the allegations "disturbing," signalling that the opposition is open to negotiation with Labor and the crossbench once the committee reports. Independent senator David Pocock used the hearing to spotlight a separate incident in which children as young as 12 wore Bet365 branding at a community running event, prompting Responsible Wagering Australia chief executive Kai Cantwell to concede the industry has "not always got things right." The episode underscores how the inquiry has broadened well beyond the advertising bill itself into a wider examination of industry culture.
The VIP Model in the Crosshairs
Beyond the lurid allegations, the hearing offered a rare window into how Australia's two dominant wagering operators structure their highest-value relationships. Whealing told senators Tabcorp has roughly 800,000 active customers, of which about 400 are classified as VIPs and are managed by approximately 20 account staff. Sportsbet confirmed similar staffing numbers for its VIP book. The VIP model, in which personal hosts cultivate relationships with high-spending punters through tailored offers and hospitality, is central to wagering revenue and is now squarely in the sights of reformers who argue it concentrates harm on the customers least able to absorb losses. Cantwell's industry body stopped well short of endorsing the Costello-Bateman claims, but the VIP-segment disclosures will likely be cited by crossbench senators and health advocates pushing for stricter duty-of-care obligations when the bill returns to the chamber.
Key points
- Sportsbet and Tabcorp told a Senate inquiry there is no evidence to support claims that account managers supplied drugs, alcohol or escorts to VIP clients.
- Anti-gambling campaigner Tim Costello and former book influencer Luke Bateman made the allegations during hearings on Labor's gambling advertising reform bill.
- Tabcorp disclosed about 400 VIP customers out of roughly 800,000 active accounts, managed by around 20 account staff, with Sportsbet reporting similar VIP staffing numbers.
- Acting Prime Minister Richard Marles described the evidence as "quite shocking" while the Coalition's Jane Hume called the allegations "disturbing" but said her party would await the committee's recommendations.
- The inquiry also examined a Bet365 community event in which children as young as 12 wore the company's branding, prompting the industry lobby to admit it has "not always got things right."
If the companies' denials hold up, the inquiry could conclude that the worst allegations reflect isolated incidents rather than industry-wide practice, allowing the advertising reform bill to pass without further damaging the sector's reputation. A clean committee report would also give the crossbench a defensible basis to support measured reform rather than punitive measures.
Even if specific allegations cannot be substantiated, the inquiry's airing of the VIP-account model and the Bet365 branding incident could harden public and crossbench opinion, leading to stricter duty-of-care laws, advertising bans that go further than Labor's current draft, and ongoing reputational damage that pressures wagering revenue and political donations.
