Sportsbet Tabcorp Deny Drug Sex Worker Allegations in VIP Betting 2026

Sportsbet and Tabcorp deny allegations that their account managers sourced drugs and sex workers to encourage VIP clients to bet more, as revealed in a recent Australian parliamentary inquiry. The betting giants face serious claims from anti-gambling campaigners, yet both companies assert zero tolerance and demand evidence be provided to regulators.

Allegations of Misconduct in VIP Betting Programs

During a parliamentary hearing into Labor’s gambling advertising legislation, Tim Costello and Luke Bateman alleged that problem gamblers were supplied with cocaine, alcohol, and escorts to increase betting activity. Bateman, now a TikTok star, claimed he attended a private Gold Coast event where senior figures used illicit drugs with clients. Costello also mentioned a gambling addict preparing to plead guilty to theft who was offered drugs and escorts.

These accusations highlight a darker side of high-roller customer management in the Australian wagering industry. The VIP betting programs are designed to reward high spenders, but critics argue they exploit vulnerable individuals without adequate duty of care.

Sportsbet and Tabcorp Respond to Parliamentary Inquiry

Jules Norton Selzer, Sportsbet’s director of corporate affairs, told the inquiry 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.”

Tabcorp’s head of government affairs, Julian Whealing, echoed similar sentiments, stating that providing illicit drugs, sex workers, or 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,” he said. Both companies called for any evidence to be referred to relevant authorities.

Regulatory Oversight and Industry Accountability

The allegations come amid growing scrutiny of gambling advertising and customer protection measures. Australia has some of the highest gambling losses per capita globally, and regulators are under pressure to enforce stricter compliance. The Australian wagering regulatory framework includes federal and state models, but gaps remain in monitoring VIP host conduct.

According to recent data, problem gambling affects approximately 1% of the adult population, but those individuals contribute a disproportionate share of industry revenue. This creates a conflict of interest for companies that rely on high-spending customers.

Comparison of Sportsbet and Tabcorp Responses

Both companies emphasize their commitment to responsible gambling, but campaigners argue that more needs to be done to protect vulnerable customers. The parliamentary inquiry continues to gather testimony and may recommend legislative changes.

Key Takeaways from the Inquiry

• Allegations include supply of cocaine, alcohol, and sex workers to VIP bettors.
• Both Sportsbet and Tabcorp deny any knowledge or tolerance of such behavior.
• Regulators are urged to investigate and enforce compliance.
• Problem gambling remains a significant social issue in Australia.
• Legislative changes to curb gambling advertising are under consideration.

FAQ

As the inquiry progresses, the focus remains on ensuring that gambling companies uphold ethical standards and protect vulnerable customers. Both Sportsbet and Tabcorp deny allegations, but the industry faces increasing pressure to reform VIP programs and advertising practices.