Representatives from Sportsbet and Tabcorp will front up for questioning when the inquiry into the government's proposed changes to gambling laws continues on Tuesday.
Alliance for Gambling Reform chief advocate Tim Costello told the inquiry on Monday he had spoken with a man facing a significant prison sentence for stealing more than $12 million to feed his gambling addiction.
Mr Costello called out the Star Casino, Sportsbet and TAB for facilitating the individual's addiction and encouraging him to bet more by providing free accommodation, drugs and bonuses.
In a statement, a Sportsbet spokesperson said the company had no evidence whatsoever of the allegations made during the inquiry.
The agency said it had zero tolerance for conduct of this nature and urged anyone with evidence to provide it to Sportsbet for investigation.
Responsible Wagering Australia has warned of far-reaching, unintended consequences to wagering, racing, sport and broadcasters under the proposed legislation.
In its submission to the Senate inquiry, the peak body claimed the measures constituted major regulatory intervention that went beyond the government's stated objectives to reduce gambling harms.
It argued a one-hour blackout of advertisements around live sport and the ability to opt-in rather than opt-out of digital ads would be "catastrophic" for sport, media rights and regional activity.
The Australian Communications and Media Authority, which is responsible for issuing fines to betting companies for breaches of the law, will also give evidence on Tuesday.
Advocates with lived experience of gambling addiction have criticised Labor's proposed reforms for not going far enough.
Communications Minister Anika Wells said the government's BetStop self-exclusion register was keeping people safe from gambling harms.
But Russell Northe from Gambling Harm Lived Experience Experts told the inquiry inducements were being weaponised by betting agencies to target customers who had closed their accounts.
"I've seen my file notes on accounts where it says explicitly this customer has closed their account. Let's contact them, offer some bonus bits, inducements to reopen an account," Mr Northe said.
"Recommendation 16 of the Murphy report, it says to ban inducements without delay.
"Here we are, what 1132 days down the track, and it's still happening. What carnage has been caused in that time?"
