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Sportsbet, Tabcorp deny allegations of sourcing drugs, sex workers for VIP clients

Created at 4 Aug · 3:06 AM1 source↑ Market-relevant
IN SHORT

Betting giants Sportsbet and Tabcorp have denied allegations that account managers sourced drugs and sex workers to incentivize VIP clients to bet more. Campaigners presented claims at a parliamentary hearing, which the companies called for evidence on to be provided to regulators.

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Key Numbers

800,000Tabcorp active customers
400Tabcorp VIP customers
20VIP account managers at Tabcorp
20VIP account managers at Sportsbet

Who's Involved

Sportsbet
Betting company denying allegations
Tabcorp
Betting company denying allegations
Tim Costello
Anti-gambling campaigner
Luke Bateman
Anti-gambling campaigner and TikTok influencer
Jules Norton Selzer
Director of corporate affairs for Sportsbet
Julian Whealing
Head of government affairs for Sportsbet
David Pocock
Independent senator
Kai Cantwell
Chief executive of Responsible Wagering Australia
Richard Marles
Acting Prime Minister
Jane Hume
Deputy Liberal leader

↳ Why This Matters

The allegations raise serious concerns about the duty of care betting companies have towards vulnerable customers and could lead to stricter regulations on the gambling industry and its advertising practices.

Key facts

  • Sportsbet and Tabcorp deny allegations of sourcing drugs and sex workers for VIP clients.
  • Allegations were made by anti-gambling campaigners at a parliamentary hearing into gambling advertising reforms.
  • A former gambling addict's advocate claimed clients were offered drugs, escorts, and accommodation.
  • A TikTok influencer alleged attending a private gambling company event with illicit drug use.
  • Both companies stated they have zero tolerance for such conduct and called for evidence to be provided to regulators.

Betting giants Sportsbet and Tabcorp have vehemently denied allegations that their account managers sourced drugs and sex workers to encourage VIP clients to increase their betting activity. The claims were made by anti-gambling campaigners Tim Costello and Luke Bateman during a parliamentary hearing focused on proposed legislation to curb gambling advertising.

Luke Bateman, now a TikTok influencer, told the inquiry that he attended a private event hosted by a gambling company where senior figures allegedly engaged in illicit drug use with clients. Costello stated he was assisting a gambling addict who was preparing to plead guilty to theft of millions of dollars and had been offered drugs, escorts, and free accommodation.

In response, Sportsbet's director of corporate affairs, Jules Norton Selzer, stated the company had "zero evidence of the allegations" and a "zero tolerance for that kind of deplorable conduct." He added that the company would investigate any information provided. Sportsbet's head of government affairs, Julian Whealing, clarified that providing illicit drugs, sex workers, and alcohol is not part of Tabcorp's customer offering, emphasizing Tabcorp's strict compliance and zero-tolerance policy.

Independent senator David Pocock questioned the industry's lobby group, Responsible Wagering Australia, about a promotion by Bet365 involving children. The group's CEO, Kai Cantwell, acknowledged past mistakes and stated the industry is acting on community sentiment regarding advertising and promotions.

Acting Prime Minister Richard Marles described the evidence presented as "shocking" and "appalling," indicating the government's intent to strike a balance with "the toughest set of reforms" in gambling and advertising. Deputy Liberal leader Jane Hume echoed these sentiments, calling the allegations disturbing and stressing the importance of protecting vulnerable individuals.

Frequently asked questions

Campaigners alleged that account managers sourced drugs, sex workers, and free accommodation to incentivize VIP clients to bet more.

Both companies denied the allegations, stating they have zero evidence and zero tolerance for such conduct, and called for any evidence to be provided to regulators.

The allegations were made during a parliamentary hearing into proposed legislation aimed at curbing gambling advertising.

Acting Prime Minister Richard Marles called the evidence "shocking," and Deputy Liberal leader Jane Hume described the allegations as "disturbing," emphasizing the need to protect vulnerable individuals.

What Happens Next

01The committee will provide recommendations on the gambling advertising legislation.
02Further investigation into the allegations by regulators is expected if evidence is provided.

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Cadence

How It Developed

Anti-gambling campaigners alleged problem gamblers were supplied drugs, sex workers, and accommodation.
A TikTok influencer claimed to have attended a private gambling company event where illicit drugs were taken with clients.
A gambling addict's advocate stated the addict was offered drugs, escorts, and free accommodation.
Sportsbet stated it had zero evidence of the allegations and would investigate any provided information.
Tabcorp stated providing illicit drugs, sex workers, and alcohol is not part of its customer offering.
Tabcorp emphasized its zero tolerance for such behavior and its status as Australia's most regulated wagering company.
Independent senator David Pocock questioned the industry lobby group about a Bet365 promotion involving children.
The industry lobby group acknowledged past missteps and a commitment to acting on community sentiment.

Sources

T1
Sportsbet and Tabcorp deny allegations they sourced drugs and sex workers to encourage VIP clients to bet moreThe Guardian

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