Major Australian gambling companies Sportsbet and TAB denied allegations that account managers offered illicit drugs and escorts to a young gambler on Monday [1].
The testimony comes during a Senate inquiry in Canberra focused on gambling reform. The allegations suggest that companies used high-value inducements to keep addicted gamblers active, raising questions about the efficacy of current consumer protection laws.
Responsible Gambling Australia, representing both firms, refuted the claims that illicit substances were supplied to betting addicts. The companies said they strongly reject the assertions made by gambling-addiction advocates during the proceedings [1].
"We have never offered drugs or escorts to any customer, and we strongly reject these unfounded allegations," a spokesperson for Sportsbet said [1].
The inquiry heard testimony regarding an inducement program allegedly designed to target vulnerable users. However, the companies maintained that such practices violate their internal governance and legal obligations.
"TAB’s responsible gambling policies are clear — we do not provide, nor would we ever consider providing, illicit substances to patrons," a TAB media representative said [1].
The Senate inquiry continued on Aug. 4 [1] to determine if existing regulations are sufficient to prevent the exploitation of individuals with gambling addictions. The representatives for the firms said that their policies are designed to protect patrons rather than incentivize high-risk behavior through illegal means.
“"We have never offered drugs or escorts to any customer"”
These allegations highlight a growing tension between the gambling industry's self-regulation and the demands for stricter government oversight. If evidence supports the claims of illicit inducements, it could lead to a complete overhaul of the Australian gambling regulatory framework and significant legal penalties for operators.

