Claims of illicit drugs and escorts offered to high-spend gamblers by major betting firms Sportsbet and TAB have emerged during a Senate inquiry, exposing the human cost of an industry the government struggles to rein in. 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 individual now sits in prison, charged with the alleged theft of $12.3 million. Sportsbet representative Jules Norton Selzer denied the "deplorable" allegations, stating the company found "zero evidence" and would investigate further information. TAB also rejected the claims, asserting such inducements "do not in any way form part of TAB's customer offering" and that the company maintains "zero tolerance" for such behavior.
Former NRL player Luke Bateman testified on Monday that betting company representatives offered to source him illicit drugs while he battled a severe gambling addiction. Mr. Bateman did not name the specific companies involved. Responsible Wagering Australia chief executive Kai Cantwell described the allegations as "egregious" but maintained the wagering industry "strongly refutes" them. He recommended complaints be directed to individual operators, law enforcement, and regulators for investigation of "clearly illegal behaviours."
Elite Interests Exposed
Sportsbet insisted to Greens Senator Sarah Hanson-Young on Tuesday that "most" customers gambled "responsibly and recreationally." Senator Hanson-Young warned the company it was on "very thin ice" with the Australian public, reminding them their industry "only gets to survive on the social licence you have." Senator David Pocock presented screenshots of an online ad from Bet365 featuring young children in branded T-shirts competing in a race, an ad since removed from Racing.com. He also cited gambling ads playing between Disney songs on a Spotify playlist. Mr. Norton Selzer denied any intent to advertise to children, stating the company had reduced free-to-air TV advertising. He defended the Spotify ad, claiming an adult curated the playlist. Senator Pocock dismissed this as "BS," questioning if the company desired "every seven-year-old to have their own Spotify account." Mr. Cantwell conceded concerns about underage exposure were legitimate, admitting the industry hasn't "always got everything right."
The proposed legislation, currently under review, does not include a total ban on advertisements. Existing partial restrictions on gambling advertising would be strengthened by the bill to further prevent children's exposure to branding and promotions. However, the methods described by Senator Pocock are not currently illegal. TAB spokesperson Julian Whealing stated the company has 800,000 active customers, with approximately 400 considered VIPs. He claimed the operator employs stringent "know your customer" requirements to deter criminal activity. Neither Sportsbet nor TAB could specify the number of account managers serving their 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 rewarding "customer loyalty" and aiming to "ultimately retain our customers." Advocates, citing the 2023 You Win Some, You Lose More report by late Labor MP Peta Murphy, are pushing for a total ban on inducements, a measure absent from the proposed legislation.
Regime Inaction
Officials from the Australian Communications and Media Authority (ACMA) struggled to answer questions regarding the implementation of the proposed legislation. A tense exchange occurred between Senator Hanson-Young and ACMA over the bill's "notable person" provision, designed to regulate gambling promotion by public figures. An ACMA representative confirmed the agency had "not formed the precise definition" but was considering case studies. Sportsbet criticized this lack of clarity, arguing "anyone with an Instagram account" could be considered a notable person under the current draft. The regulator confirmed it had not received additional funding to enforce the new advertising regime.
Sportsbet, TAB, and Responsible Wagering Australia broadly support the government's changes but warned against a complete gambling ad ban. They claimed such a ban would accelerate the movement of punters to illegal offshore gambling streams. Mr. Norton Selzer described the proposed legislation as "substantial" but cautioned that additional advertising bans would create "significant funding issues" for sport, racing, and broadcasting. He argued this would have a "disproportionate impact relative to the policy objectives of the bill." Mr. Cantwell asserted that licensed online wagering companies operate in one of the "most highly regulated gambling markets in the world," contributing $6 billion in economic activity annually. He stated, "We are not and have never been anti-reform," adding that "Seventy per cent of Australians enjoy a punt, and the key question is where they gamble." He concluded that if the regulated market becomes "less visible, harder to access or less competitive, consumers don't stop gambling," and "the evidence proves that they will move to illegal offshore operators." This position effectively holds the public hostage to the industry's terms, ensuring corporate profits continue while the social fabric frays.