The NRL club has been stripped of two premierships and fined $1.6 million after being found guilty of long-term salary cap breaches.

Senator Xenophon said the controversy was evidence that sports betting was open to abuse.

"What recourse is there for gamblers who ... bet on the 2007 and 2009 premierships, can those punters get back the money they lost when it's now been revealed the team was technically cheating?," he said in a statement on Friday.

Senator Xenophon said a betting plunge earlier in the week backing the Storm to finish last was proof some gamblers were cheating by using inside information.

"To avoid scandals that will destroy the integrity of our iconic sporting codes, an urgent overhaul of online and sports betting laws is needed," he said.