Responsible Wagering Australia chief executive Kai Cantwell strongly refuted claims levelled against TAB, Sportsbet and the broader sector.
"Some pretty egregious claims have been leveled against some of my members and non-members in the committee yesterday. These are incredibly serious." Â Mr Cantwell told the inquiry on Tuesday.
"If these claims are true, we strongly recommend complaints are levelled with individual operators as well as law enforcement and regulators, so that clearly illegal behaviours can be properly investigated."
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 man's addiction and encouraging him to bet more by providing free accommodation, drugs and bonuses.
Multiple witnesses, including a former NRL player Luke Bateman, confirmed they had been targeted in a similar way.
Sportsbet executive Jules Norton Selzer acknowledged community concern around excessive advertising and dismissed claims aired at the inquiry.
"We have zero evidence of the allegations made by Reverend Costello yesterday," Mr Norton Selzer said.
Tabcorp representative Julian Whealing echoed his colleagues regarding the allegations of predatory behaviour raised on Monday.
"These claims do not in any way form part of Tabcorp's customer offering," Mr Whealing said.
Acting Prime Minister Richard Marles acknowledged the "appalling story" presented to the inquiry and defended the federal government's gambling measures.
"I found that evidence quite shocking," he told reporters in Sydney.
"From the government's point of view, we've done more in respect of problem gambling than any government has ever done."
Greens senator Sarah Hanson-Young said there were growing calls from non-government ranks to strengthen the gambling laws.
"Within the coalition there is growing concern that this bill will not protect people," she told ABC Radio.
"This isn't actually about party politics. This is about the vested interests of the gambling companies continuing to be predators on vulnerable Australians and particularly young people."
The inquiry into Labor's proposed reforms to gambling advertising continues.
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