 Waterhouse was cleared of rumours surrounding the doping of Melbourne Cup co-favourite, Big Philou in 1969, when it was shown by Australian Jockey Club (AJC) officials he was not working on the race, by then being a Sydney bookmaker and did not stand to lose on Big Philou in the doubles business run by his staff.Waterhouse was the father of bookmaker Robbie Waterhouse, and the father-in-law of horse trainer Gai Waterhouse.In 1984 Waterhouse and his son Robbie lost their bookmakers’ licenses when it was alleged they had ‘prior knowledge’ of the Fine Cotton ring-in and the AJC revoked their licenses, before waiting for the results of the Queensland police inquiry into the ring-in.