Independent Senator Nick Xenophon says controversial bookmaker Tom Waterhouse is "laughing all the way to the bank" after selling his online betting business.
Senator Xenophon has called for an urgent overhaul of online gambling laws following the sale to British gaming company William Hill for $34 million.
He says the deal means overseas online betting interests will control more than 50 per cent of the Australian online market.
William Hill will also gain access to Tom Waterhouse's list of customers which may be used to easily identify which players are big losers and make bad betting decisions, the senator says.
"Tom Waterhouse and William Hill may be on a sure thing but the risk is that more Australian players will be exploited by this predatory industry," Senator Xenophon said in a statement on Friday.
"Tom Waterhouse is now laughing all the way to the bank with this deal where more and more Australians are losing their shirts through online gambling."
Senator Xenophon said online gambling providers, which operated under Northern Territory laws, needed to be brought under a much tougher national approach.
He pledged to re-introduce legislation in the Senate following the election that would provide greater protection for players, outlaw micro (small event) betting, restrict inducements such as credits and require a strict duty of care when dealing with problem gamblers.
Earlier this year William Hill also acquired Sportingbet's Australian business for $670 million.
Chief executive Ralph Topping said the company had set its sights on becoming Australia's biggest online bookmaker.
"Acquiring tomwaterhouse.com gives us a rapidly growing business that appeals to a wider customer base," Mr Topping said in a statement.
Irish bookmaker Paddy Power has owned sportsbet.com.au outright since December 2010.
