Sportsbet and Tabcorp Reject Claims They Sourced Drugs and Sex Workers for VIPs

Sportsbet and Tabcorp have pushed back against explosive allegations raised during a parliamentary hearing, insisting there is no evidence to support claims that their staff supplied drugs or sex workers to encourage vulnerable customers to gamble more.

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Both companies said they would cooperate fully with regulators if any information about the allegations is provided, a point first reported by the Guardian. 

The accusations surfaced as anti‑gambling advocates Tim Costello and Luke Bateman addressed a committee reviewing Labor’s proposed limits on gambling advertising. 

Bateman, who has since built a following as a TikTok creator and book influencer, told MPs he once attended a private event on the Gold Coast hosted by a gambling company where senior figures allegedly used illicit drugs alongside clients.

Costello described helping a gambling addict who is preparing to plead guilty to stealing millions of dollars, saying the man had been offered cocaine, escorts and free accommodation while in the grip of addiction.

“Zero evidence of the allegations”

Sportsbet used Tuesday’s hearing to make its position clear, with corporate affairs director Jules Norton Selzer telling MPs the company had “zero evidence of the allegations.” 

He said Sportsbet had “no tolerance for that kind of deplorable conduct and information,” adding that nothing had been provided to the business beyond what was aired the previous day. 

Norton Selzer said the company would investigate anything credible that came its way, stressing that its aim was for “adult customers to enjoy our product safely and responsibly.” He pointed to the company’s support for stronger consumer protections and efforts to limit underage exposure across the regulatory systems it operates in.

Tabcorp delivered a similar message. Julian Whealing, the company’s head of government affairs, told the inquiry that supplying illicit drugs, sex workers or alcohol was not “part of Tabcorp’s customer offering.”

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He said the business had “zero tolerance for this behavior,” describing Tabcorp as Australia’s most regulated wagering operator and noting that compliance sits at the centre of its responsibilities. Whealing said any evidence of illegal activity should be handed to authorities.

Both companies also outlined the scale of their VIP operations. Tabcorp has roughly 800,000 active customers, with about 400 classified as VIPs. Whealing estimated around 20 staff work as VIP account managers. Norton Selzer said Sportsbet employs a similar number.

bet365 children gambling ad also questioned

The hearing also turned to gambling advertising, with Senator David Pocock challenging how children are exposed to betting brands.

He showed the inquiry screenshots from a Bet365 promotion on Racing.com that featured young children in branded T‑shirts taking part in a race. That ad has since been removed from th

Pocock then pointed to gambling ads playing between Disney songs on a Spotify playlist, raising questions about how easily betting messages can appear around child‑focused content.

Selzer told the committee it was “absolutely not” the company’s intention to advertise to children. He said Sportsbet had already cut back its advertising on free‑to‑air television to reduce exposure and defended the Spotify example by arguing that “this was an adult on an adult playlist,” noting that an adult had curated it. 

Industry figures at the hearing accepted that concerns about underage exposure are real. The proposed Labor legislation stops short of a full advertising ban but would tighten existing rules, aiming to further limit how often children see gambling branding and promotions beyond the current partial restrictions.

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