Dobson, 22, was arrested on court two at Melbourne Park and discovered to have a device in his shorts which would enable him to transmit the results of points before they were officially distributed around the world, the court heard.
Dobson's lawyer Sass Nasimi said his client was simply collecting data to protect a betting agency from fluctuating odds, according to an Australian Associated Press (AAP) report.
Police made the arrest with the help of new legislation targeting sports-related corruption in Victoria state, where the tournament is held.
Prosecutors told the court that police were investigating two other British men in relation to the same offence.
(Reporting by Nick Mulvenney, editing by Amlan Chakraborty)
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