But the independent and Green MPs who were outvoted questioned why a man who craves attention had suddenly gone shy.
The 30-year-old son of trainer Gai Waterhouse was issued a formal request to front the inquiry after refusing an earlier invitation because of a racing carnival.
He did not give an excuse this time and could not be contacted.
The snub angered committee members who believe it showed arrogance and a lack of courage, with one MP suggesting Waterhouse's "racing royalty" tag may have gone to his head.
But News Ltd understands Labor and Coalition members of the committee chose not to invoke a rarely-used power to summons Waterhouse - a move that could not have been refused - despite three Green or independent MPs agitating for it.
Committee chair and independent MP Andrew Wilkie said Waterhouse should have been made to attend.
"I mean, maybe he's starting to believe some of the media hype about him being racing royalty and above the parliament.
"(He) could have helped the committee to better understand why the industry thinks it's okay to bombard viewers with (gambling) advertising at a time of the day when a lot of children are watching TV."
Greens Senator Richard Di Natale said Waterhouse's decision was gutless.
"For a man who loves the limelight, he's gone to ground when it comes to answering a few tough questions," he said.
"I think it shows a lack of courage (and) total contempt for the parliament and the community."
Senator Di Natale said he should have been "forced to answer some difficult questions" considering the significant public concern.
Waterhouse earlier provided a two-page letter saying he never intentionally targeted children in gambling advertising.
He also defended his controversial on-air role during Channel 9 NRL broadcasts, saying the arrangement was vital because traditional ad breaks had lost some of their selling power.
Meanwhile, television networks say the promotion of gambling odds during live broadcasts will likely be banned within weeks.
Free TV Australia, which represents all commercial free-to-air stations, wants a new code to ban commentators and guests from promoting live odds before, during and after a game in place as soon as possible.
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