The application has since lapsed.
In 2009,the company made a submission to the Productivity Commission gambling inquiry regarding credit betting.
Former NSW Liberal premier Nick Greiner is the chairman of PlayUp,which has attracted a host of well-known wealthy investors and sports people.
Mr Turnbull said that before investing in Revo he received a written assurance from Mr Greiner that the company was not involved in gambling.
The letter from Mr Greiner states:‘‘Playup is not,nor has any intention of becoming involved in any business that falls within the general definition of interactive gaming or gambling.
‘‘Playup does not own,operate or offer any gambling services (interactive or otherwise) and is not a gambling service.’’
But Australia Institute executive director Richard Denniss said Mr Turnbull’s investment was not a good look.
‘‘While it is not clear that PlayUp is currently involved in gambling,it is clear that it has tried to become involved via its patent application and that it is perceived by others to be involved in gambling,’’ Dr Denniss said.
Australian National University lecturer Andrew Hughes,whose areas of expertise include both political and sports marketing,said Mr Turnbull should not have invested in the company. ‘‘Sports betting companies often don’t start out as betting companies. They lure people in through their interest in sports and once they have their customer base then they expand into sports betting,’’ he said.