Tabcorp, Sportsbet deny allegations around VIP clients

Betting giants Tabcorp and Sportsbet have refuted allegations their staff offered inducements to problem gamblers during a fiery senate grilling.

Anti-gambling advocate Tim Costello told an inquiry into the federal government’s proposed gambling reforms on Monday he was assisting a gambling addict who will plead guilty to stealing millions from his company.

Costello claimed the man had been offered incentives including “escorts and drugs” as inducements. Sportsbet and Tabcorp say there is no evidence to substantiate those allegations.

“He was the TAB’s biggest customer in that time. They were giving him $50,000 bonus bets,” Costello alleged.

“He was also Sportsbet’s biggest customer. They were flying him to grand finals.

“They were offering him escorts, drugs, whatever he wanted. He was doing turnover of more than $20 million a month.”

Representatives from Tabcorp and Sportsbet faced the inquiry on Tuesday and denied the allegations.

Tabcorp head of government affairs Julian Whealing said the allegations were not part of the company’s offering to customers.

“Tabcorp has zero tolerance for this behaviour,” he said.

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“Any evidence of this illegal activity should be referred to the relevant authorities.”

Sportsbet director of corporate affairs Jules Norton Selzer said the company has “zero evidence of the allegations”.

“We have no tolerance for that kind of deplorable conduct, and no information has been provided to us beyond what was referenced yesterday, and we would gladly investigate it,” he said.

Tabcorp and Sportsbet faced intense questioning from Greens Senator and communications spokesperson Sarah Hanson-Young on VIP accounts.

It comes after former NRL star Luke Bateman alleged to the inquiry on Monday that his VIP account manager would offer to provide him cocaine while he was addicted to gambling. Bateman did not name the betting company.

Whealing said Tabcorp has 800,000 active customers with about 400 of those designated as VIPs, while Selzer said Sportsbet has roughly the same amount.

Hanson-Young asked the pair to explain the role of a VIP account manager.

“Tailored offers, communication more directly with a customer, for example, and providing information around betting that they enjoy,” Selzer said.

“What’s a tailored offer?” Hanson-Young asked.

“Types of promotions and products and offers that customers would like, for example, if they like betting on football or the AFL,” Selzer said.

“Like a drug dealer says, ‘What drugs do you want? Is it coke today, is it this, is it that?’” Hanson-Young asked.

“I don’t accept that characterisation, Senator. We’re a legal, licensed, regulated product and industry,” Selzer said.

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Speaking to reporters after the inquiry wrapped up, Hanson-Young urged the prime minister to amend his government’s proposed legislation to provide stronger protections against the “predatory nature” of gambling companies.

“I am hopeful, though, that given the evidence that has been shown over the last two days, that my parliamentary colleagues on all sides are going to be looking at this and thinking we’ve got to fix it,” she said.

Richard Marles, acting prime minister while Anthony Albanese is on leave, told reporters on Tuesday that testimonies about problem gamblers allegedly being offered inducements, drugs, sex and alcohol were appalling.

“I found that evidence quite shocking,” he said.

“I want to make clear that, from the government’s point of view, we’ve done more in respect of problem gambling than any government has ever done.

“We’ve looked at this issue in detail over a long period of time. There is a balance that has to be struck here, and we intend to reach that balance.”

Parliament will debate the government’s proposed reforms when it resumes next week.

The Greens and independents have vowed to fight it in the Senate, while the Coalition has signalled it is open to work with Labor.

There are many different ways to get help and information about gambling. You can visit the National Gambling Helpline or call on 1800 858 858.