Betting Firms Reject Allegations as Senate Examines Federal Gambling Reform Bill

Australia's largest wagering companies have rejected claims that millions of dollars stolen by a former financial adviser were spent through their betting platforms, as the federal government's proposed gambling reforms come under scrutiny during a Senate inquiry.

The Senate committee investigating the Interactive Gambling Amendment (Gambling Reform) Bill 2026 heard evidence from anti-gambling advocate Reverend Tim Costello, who referred to the case of a former financial adviser who later admitted to criminal offences involving the theft of more than $12 million from his employer over a 17-month period.

According to Reverend Costello, the man became an exceptionally high-value gambling customer, allegedly wagering in excess of $20 million each month. Costello told the inquiry that the individual was regarded as the biggest customer of both Sportsbet and Tabcorp, alleging that he received a range of premium incentives and hospitality benefits because of his gambling activity.

The allegations drew sharp criticism from Greens Senator Sarah Hanson-Young, who argued that the customer was subjected to extensive marketing and promotional activity from wagering operators. She claimed the betting companies aggressively targeted the individual through advertising, promotions and inducements designed to encourage continued gambling.

Sportsbet and Tabcorp rejected the allegations that stolen money had been channelled through their services. The companies also used the inquiry to voice concerns about the Albanese government's proposed gambling reforms, arguing that several of the measures extend beyond what is necessary to achieve consumer protection objectives.

The Senate inquiry forms part of the federal government's broader examination of Australia's interactive gambling laws and whether additional restrictions should be introduced to reduce gambling-related harm. The proposed legislation has attracted strong views from both public health advocates, who support tighter regulation, and the wagering industry, which warns that some reforms could have unintended consequences for licensed operators.

Evidence presented during the inquiry is expected to be considered by the committee before it delivers its recommendations on the Gambling Reform Bill. The debate continues to highlight the tension between strengthening consumer protections and maintaining a regulated betting industry, with lawmakers weighing competing arguments from gambling companies, advocacy groups and policymakers.

By fLEXI tEAM