Sportsbet and Tabcorp deny allegations they sourced drugs and sex workers to encourage VIP clients to bet more

Gambling companies Sportsbet and TAB have rejected allegations that they offered high-value customers access to illegal drugs and escorts to encourage continued gambling. Reverend Tim Costello, an advocate for gambling reform, testified to a Senate inquiry that a young man he knows allegedly received funding for travel, escorts and drugs from both companies and is now incarcerated for alleged theft of $12.3 million.

Both Sportsbet and TAB denied these allegations, stating they have found "zero evidence" to support the claims and would investigate further if provided with more information. TAB emphasized its "zero tolerance" policy for such behavior. Former NRL player Luke Bateman testified that betting company representatives offered him illicit drugs while he was dealing with a severe gambling addiction, though he did not specify which companies.

Responsible Wagering Australia's chief executive, Kai Cantwell, described the allegations as "egregious" but urged the gambling industry to address them seriously, recommending complaints be filed with operators, law enforcement and regulators. Betting companies defended their advertising practices, with Sportsbet's Jules Norton Selzer denying any intent to target children in ads and defending the use of inducements as promotions to retain loyal customers. The proposed legislation does not ban inducements entirely.