Senate inquiry hears allegations of illicit inducements in Australian gambling industry

A Senate inquiry into Australia’s gambling industry has heard allegations that major operators provided illicit inducements, including drugs, sex workers, and alcohol, to high-roller clients. Former NRL player Luke Bateman testified to these practices, describing a private Gold Coast event hosted by a gambling company where senior figures allegedly took illicit drugs with clients. Industry representatives, including executives from Sportsbet and Tabcorp, denied the allegations, stating there is zero evidence of such activities and that they are not part of their customer offerings. The inquiry coincides with federal parliament preparing to debate the government’s proposed gambling reforms, which critics argue are insufficient compared to the recommendations of the Peta Murphy report.

Luke Bateman, a former NRL player and reformed problem gambler, told the inquiry he was flown interstate to race days and offered drugs by VIP managers before events. He stated he lost $1 million and considered suicide as a result of his gambling habits, which he attributes to the inducements provided by the industry. Bateman described how VIP managers would ask clients what drugs they wanted, such as “a couple of bags for the weekend,” before events. He highlighted that he was 23 at the time and part of the 18-24 cohort, which is the fastest-growing group for problem gambling in the country.

Industry representatives have firmly rejected the allegations. Jules Norton Selzer, director of corporate affairs for Sportsbet, told the inquiry the company had “zero evidence of the allegations”. Julian Whealing, Tabcorp’s head of government affairs, said the provision of illicit drugs, sex workers, and alcohol was not “part of Tabcorp’s customer offering”. Whealing added that any evidence of illegal activity should be referred to the relevant authorities.

Mark Kempster, an advocate for the Alliance for Gambling Reform, told the inquiry he has dozens of examples from others relating similar experiences, describing such occurrences as regular across major VIP programs. Kempster, who uses his own experience of problem gambling to advocate, stated that the types of inducements described by Bateman happen across nearly all the major VIP programs he has seen. He noted that beyond illicit substances, problem gamblers face constant badgering with offers of bonus bets and other incentives.

The government’s proposed reforms include capping TV ads at three per hour until 8.30pm, banning radio ads during school drop-off and pick-up, banning ads in sports venues and logos on uniforms, banning the use of stars in ads, and restricting online ads to adults only. Critics argue these measures amount to tinkering that avoids the substantive recommendations of the Peta Murphy report, released over 1,100 days ago. The Murphy report recommended a total ban on betting inducements and advertising, along with the establishment of a national regulator with enforcement powers.

Anna Bardsley, co-founder of Gambling Harm Lived Experience Experts (GHLEE), stated there is no gap in knowledge or evidence, only in regulation and oversight. She described the current bill as “piss-weak” compared to the blueprint provided by the Murphy report, which she said could end the exploitation of people. Bardsley emphasised that the only gaps are in the willingness of the government to uphold its moral and ethical responsibility to its people.