A Parliamentary inquiry into interactive and online gambling heard recently that Sportsbet often pays third parties huge sums of money for new client referrals.
The Chief Executive of Sportsbet was speaking at the inquiry, and added that they did not tell new punters that others were being paid commission on their gambling.
Senator Nick Xeonophon, who is an outspoken critic of gambling, wondered if Sportsbet were aware that they might be in breach of legislation.
This prompted Frank Zumbo, who is an associate professor of Business Law, to state that he would be contacting the Australian Competition and Consumer Commission (ACCC) about the matter as he felt that customer referrals should be more transparent.
Sportsbet claim that this is standard practice, and that the third party agents operate in places such as racing clubs or professional gambling groups, where they pass on the names of potential customers.
Senator Xenophone has pledged to amend his bill on online casino gambling, which is being looked at by the inquiry, so that commissions can be banned in the future.