Drugs, escorts and gambling; EVs and hybrids hit 50pc; being poor can damage your brain
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What is the main topic discussed in this episode?
Welcome to Fear and Greed, business news you can use.
What allegations have been made about Tabcorp and Sportsbet offering drugs and escorts to gamblers?
Today, gaming companies, including Tabcorp and Sportsbet, are accused of offering drugs and escorts to gamblers. The sale of electric and hybrid vehicles reaches just under 50% and a private equity consortium set to buy insurance brokers steadfast in a $7 billion deal. Plus, Australia's two biggest fleet management companies set to merge... And a new study says being poor can do long-term damage to your brain. It is Tuesday, the 14th of August, 2026. I'm Michael Thompson. And good morning, Sean Aylmer. Did I just say the 14th? You did say the 14th.
It's the 4th, listeners.
How did witnesses at the Senate inquiry describe betting companies' VIP inducements?
It's the 4th, not the 14th.
Oh, God, that's a constant problem.
I think the study about being poor doing long-term damage to your brain has thrown you somewhat.
That's a bad news story if ever I've heard one.
Sure. For many of us.
Golly. Yep. Okay, we'll get to that one a little bit later on. But yes, it is indeed the fourth today. The main story this morning, gaming companies, including Tabcorp and Sportsbet, have been accused of offering drugs, escorts, and thousands of dollars a week in inducements to keep big spending gamblers punting. Alliance for Gambling Reform boss Tim Costello said gaming company account managers would work out people's vulnerabilities and exploit them. And so he named Tabcorp and Sportsbet among those offering drugs and escorts. And he said he was conveying the experience of an individual who was currently serving a jail sentence. This all emerged yesterday when Costello was speaking at a Senate inquiry.
It is probing the Albanese government's proposed gambling reform legislation.
Also at the inquiry was former National Rugby League player Luke Bateman. He said as a 23-year-old, he was often invited to VIP events across the country and in one case did drugs with the bosses of one unnamed sports betting company at a party on the Gold Coast. This is all according to a report in the Fin Review. Bateman said he was absolutely a willing participant, but he was being influenced by people in power. Sportsbet and Tabcorp have not commented on the accusations as yet.
I mentioned the government's proposed legislation. As a bit of background, that proposes restricting gambling ads to three per hour between 6 a.m. and 8 p.m. on TV with a complete ban during live sports shown between those hours. While there will be no restrictions, sorry, rather there will be restrictions on social media advertising, but no advertising allowed during school drop-off and pick-up times. Celebrities and athletes would also be banned from appearing in gambling ads and odd-style promotions targeting sports fans. Critics, though, Sean, say that these planned changes don't actually go far enough. And there's a report by the late MP Peter Murphy three years ago that actually recommended the government go much, much further.
It's a really difficult issue for the government given gambling is legal, unlike illicit drugs. Australian Institute Research said Australians lost $32 billion to gambling last year, more than they spent on electricity and gas, more than they spent on alcohol. Gambling has many non-financial implications as well. Now, $32 billion to the gaming company, it's big business, and they spend hundreds of millions of dollars in advertising, of which the majority goes to free-to-air TV. That's according to the Australian Communications and Media Authority. That amount of money can mean the difference between a viable and a non-viable media company. Plus, the government gets a cut of betting revenue from providers.
So, according to Racing Newsletter, The Straight, state and territory governments collect $10.5 billion in gambling taxes. Now, that, to me, sounds a bit high, to be perfectly honest. But maybe if you add racing and Keno, the pokies, lotto, everything else in there, maybe it gets to that. When you have on one side a very, very vocal anti-gaming group, and on the other, big business, the government is in for a fight.
Yeah, it certainly is, as we saw yesterday.
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Chapters
5 chapters
1
What is the main topic discussed in this episode?
0:06–0:08
2
What allegations have been made about Tabcorp and Sportsbet offering drugs and escorts to gamblers?
0:08–0:45
3
How did witnesses at the Senate inquiry describe betting companies' VIP inducements?
0:45–10:04
4
What changes are proposed in the Albanese government's gambling advertising reforms?
10:04–13:50
5
How big is gambling's financial impact on Australians and government revenue?
13:50–16:58