Gambling companies appearing before a Senate inquiry denied allegations they offered a high-spend customer illicit drugs and escorts, even as the industry fights against comprehensive reforms that would curb its profits. Alliance for Gambling Reform chief advocate Reverend Tim Costello told the inquiry a young man received funding for travel, escorts, and drugs from Sportsbet and TAB. This same man now sits in prison, charged with the alleged theft of $12.3 million.
Sportsbet, represented by Jules Norton Selzer, claimed the company found "zero evidence" to support these "deplorable" allegations. TAB also rejected the claims, stating such inducements "do not in any way form part of TAB's customer offering." Former NRL player Luke Bateman testified on Monday that betting company representatives offered to source him illicit drugs during his severe gambling addiction. He did not name specific companies.
Who Profits from Addiction
Responsible Wagering Australia chief executive Kai Cantwell described the allegations as "egregious" but insisted the wagering industry "strongly refutes" the claims. He suggested complaints be directed to operators, law enforcement, and regulators for investigation of "clearly illegal behaviours." Sportsbet maintained that "most" customers gambled "responsibly and recreationally," despite Senator Sarah Hanson-Young's warning that the industry was on "very thin ice" with the public. She noted the industry's survival depends on its "social licence."
Senator David Pocock presented screenshots of an online ad by Bet365 featuring young children in branded T-shirts. He also highlighted gambling ads playing between Disney songs on a Spotify playlist. Mr. Norton Selzer denied any intention to advertise to children, stating the Spotify ad was on an "adult playlist" curated by an adult. Senator Pocock dismissed this as "BS," questioning if the company wanted "every seven-year-old to have their own Spotify account." Mr. Cantwell conceded that concerns about underage exposure were legitimate, admitting, "Has the industry always got everything right? No."
TAB spokesperson Julian Whealing stated the company serves 800,000 active customers, with approximately 400 considered VIPs. He claimed stringent "know your customer" requirements were in place to prevent criminal activity. Neither Sportsbet nor TAB could specify how many account managers serviced these VIP customers. Sportsbet admitted to providing "tailored offers" to some customers, selected based on "engagement" rather than betting volume. Mr. Norton Selzer defended these "promotions" as rewards for "customer loyalty," aimed at "ultimately retain[ing] our customers." This system of inducements, designed to maximize surplus extraction from vulnerable individuals, was a key finding of the 2023 You Win Some, You Lose More report by late Labor MP Peta Murphy.
The State's Limited Hand
The proposed federal legislation, currently under inquiry, does not include a total ban on inducements, a measure strongly advocated by reform groups. It also stops short of a total ban on advertising, instead proposing partial restrictions to reduce children's exposure. The communications watchdog, ACMA, struggled to answer questions about the implementation of the bill's "notable person" provision, intended to regulate gambling promotion by public figures. A representative admitted ACMA had "not formed the precise definition" and was considering case studies. Sportsbet criticized this lack of clarity, claiming "anyone with an Instagram account" could fall under the definition. ACMA confirmed it had not received additional funding to enforce the proposed advertising regime, revealing the state's under-resourced capacity to regulate capital.
Sportsbet, TAB, and Responsible Wagering Australia broadly supported the government's limited changes. However, they warned against more comprehensive proposals, such as a complete gambling ad ban, claiming it would accelerate the movement of gamblers to illegal offshore streams. Mr. Norton Selzer argued additional advertising bans would create "significant funding issues" for sport, racing, and broadcasting, having a "disproportionate impact relative to the policy objectives." Mr. Cantwell asserted that licensed online wagering companies already operate in one of the "most highly regulated gambling markets in the world," contributing $6 billion in economic activity each year. He stated, "We are not and have never been anti-reform," but warned that if the regulated market becomes "less visible, harder to access or less competitive, consumers don't stop gambling… they will move to illegal offshore operators." This is a familiar threat from capital, leveraging the specter of market disruption to resist any genuine challenge to its profit mechanisms.