Sportsbet and Tabcorp Deny Drug and Sex Worker Allegations 2026

Sportsbet and Tabcorp deny allegations that their account managers sourced drugs and sex workers to encourage vulnerable VIP clients to bet more, as the Australian gambling inquiry heats up. The anti-gambling campaigners Tim Costello and Luke Bateman presented the claims during a parliamentary hearing into Labor’s proposed gambling advertising curbs, but both betting giants insist they have zero evidence to substantiate the accusations.

Allegations of Misconduct in VIP Gambling Programs

The inquiry heard from Tim Costello, who said he is assisting a gambling addict preparing to plead guilty to theft of millions of dollars. According to Costello, this individual was offered drugs, escorts, and free accommodation to keep betting. Luke Bateman, a former insider turned TikTok star, also testified that he attended a private Gold Coast event where senior gambling company figures took illicit drugs with clients.

These allegations highlight the darker side of VIP customer retention strategies in the betting industry. While companies often promote responsible gambling, critics argue that high-roller programs may cross ethical and legal lines to maximize profits.

Sportsbet and Tabcorp Respond to Inquiry

Jules Norton Selzer, director of corporate affairs at Sportsbet, told the inquiry on Tuesday: “We have zero evidence of the allegations. We have no tolerance for that kind of deplorable conduct and information.” He added that no specific information had been provided beyond the hearing, but the company would gladly investigate any credible claims.

Tabcorp’s head of government affairs, Julian Whealing, echoed similar sentiments: “Provision of illicit drugs, sex workers, and alcohol is not part of Tabcorp’s customer offering. Tabcorp has zero tolerance for this behavior, we are Australia’s most regulated wagering company, and we take our responsibilities to compliance seriously.”

Regulatory Scrutiny and Industry Standards

The parliamentary inquiry is examining whether current regulations are sufficient to protect problem gamblers. The allegations, if proven, could lead to stricter oversight of VIP programs and harsher penalties for misconduct. Both companies have called for any evidence to be referred to authorities, signaling their willingness to cooperate with investigations.

Australia’s gambling industry is already under pressure to reduce advertising and implement stronger consumer protections. This latest controversy may accelerate reforms, particularly around how betting companies interact with high-spending clients.

Comparison: Sportsbet vs. Tabcorp Response

Key Takeaways from the Gambling Inquiry

• Sportsbet and Tabcorp deny all allegations of supplying drugs or sex workers.
• Tim Costello and Luke Bateman presented testimonies of problem gamblers being incentivized with illicit offers.
• Both companies emphasize zero tolerance and willingness to cooperate with regulators.
• The inquiry may lead to stricter rules on VIP customer management.
• Industry-wide reforms are likely to focus on duty of care and advertising restrictions.

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