The Australian betting sector is confronting renewed reputational risk after allegations emerged that industry executives provided illegal drugs to social media influencers at interstate race days.
Former rugby league player and BookTok influencer Luke Bateman described being flown to events by betting companies, where he was plied with alcohol and offered a choice of substances.
Bateman alleged that senior management teams were present in backrooms during these incidents, suggesting a culture of excess that extends beyond standard marketing practices.
These claims add to the mounting pressure on Australian wagering firms, which are already grappling with structural headwinds.
Perpetual portfolio manager Nathan Hughes has recently shifted focus toward undervalued healthcare and software names, arguing that the rise of prediction markets has disproportionately pressured traditional betting stocks.
Hughes contends that the sector's valuation multiples have been compressed as investors reassess the long-term growth trajectory of legacy bookmakers in the face of disruptive technology.