Sportsbet and Tabcorp Deny Drug, Sex Worker Allegations for VIP 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 parliamentary inquiry into gambling advertising heats up. The betting giants face serious claims from anti-gambling campaigners, raising urgent questions about duty of care and industry regulation.

Allegations of Misconduct in VIP Customer Programs

During a parliamentary hearing into Labor’s proposed legislation to curb gambling advertising, campaigners Tim Costello and Luke Bateman alleged that problem gamblers were supplied with cocaine, alcohol, and sex workers. Bateman testified that he attended a private Gold Coast event hosted by a gambling company where senior figures took illicit drugs with clients. Costello added that he is assisting a gambling addict who was offered drugs, escorts, and free accommodation, and is now preparing to plead guilty to theft of millions of dollars.

These allegations point to a systemic failure in the industry’s treatment of high-rollers, where incentives may cross legal and ethical lines. The term VIP betting incentives now carries a darker connotation, as regulators and the public demand accountability.

Sportsbet's Response: Zero Tolerance and Zero Evidence

Jules Norton Selzer, Sportsbet’s director of corporate affairs, told the inquiry on Tuesday that the company has “zero evidence of the allegations.” He emphasized, “We have no tolerance for that kind of deplorable conduct and information. No information has been provided to us beyond what was referenced yesterday, and we will gladly investigate it.” Selzer reiterated that Sportsbet’s objective is for adult customers to enjoy their product safely and responsibly, supporting measures to reduce underage exposure and strengthen consumer protections.

However, critics argue that the lack of internal evidence does not negate the testimonies presented. The onus is on the companies to conduct thorough internal reviews and cooperate with regulators.

Tabcorp's Stance: Compliance and Referral to Authorities

Julian Whealing, Tabcorp’s head of government affairs, stated that providing illicit drugs, sex workers, and alcohol is not “part of Tabcorp’s customer offering.” He added, “Tabcorp has zero tolerance for this behavior, we are Australia’s most regulated wagering company, and we take our responsibilities to compliance seriously. Any evidence of this illegal activity should be referred to the relevant authorities.”

Tabcorp, which has about 800 account managers, insists that its compliance framework is robust. Yet, the industry as a whole faces mounting pressure to prove that responsible gambling practices are more than just lip service.

Comparison of Sportsbet and Tabcorp Responses

This table highlights the defensive postures of both companies, yet neither has offered a concrete plan to audit existing VIP programs or proactively monitor account manager conduct.

Key Takeaways for Gambling Industry and Consumers

• Allegations of supplying drugs and sex workers to VIP clients remain unsubstantiated but are under parliamentary scrutiny.
• Sportsbet and Tabcorp both deny any wrongdoing, but call for evidence to be referred to regulators.
• The inquiry underscores the need for stronger gambling duty of care regulations and transparent customer monitoring.
• Consumers should be aware of the risks associated with VIP betting incentives and seek help if gambling becomes harmful.
• Regulators may impose stricter advertising limits and compliance requirements if the allegations gain traction.

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