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Gambling inquiry hears allegations of illicit supply to high-value punters

Published August 3, 2026 at 6:01 AM UTC

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A parliamentary inquiry into Australia's gambling industry has heard explosive testimony from former NRL player Luke Bateman, who alleged that employees of major betting companies provided him with cocaine and alcohol to maintain his status as a high-value customer. Bateman, who has previously spoken openly about his struggle with a severe gambling addiction that cost him approximately $500,000, told the inquiry that these inducements were used to cultivate his loyalty during his playing career. The allegations have cast a spotlight on the aggressive tactics used by some wagering operators to retain VIP clients, often referred to as 'whales' in the industry.

Bateman’s testimony adds to a growing list of concerns regarding the duty of care owed by betting agencies to their most vulnerable users. The inquiry is examining how wagering companies manage their VIP programs, which typically offer perks such as free bets, event tickets, and personal account managers. Critics argue that these programs are designed to keep individuals betting even when they show clear signs of financial and personal distress. The revelation that illicit substances may have been part of this retention strategy marks a significant escalation in the scrutiny facing the sector.

Industry giants Tabcorp and Sportsbet have faced repeated regulatory challenges in recent years, ranging from anti-money laundering investigations to class actions regarding illegal in-play betting services. The current inquiry is tasked with determining whether existing regulations are sufficient to prevent such predatory behavior. As the hearings continue, the focus is expected to remain on the accountability of corporate executives and the effectiveness of current harm-minimization policies. The public and regulators are now watching to see if these latest claims will trigger a broader overhaul of how betting companies interact with their high-stakes customers.