The Australian Federal Police has closed its foreign bribery investigation against Tabcorp due to an inability to obtain the required evidence to prosecute, clearing the name of former chief executive Elmer Funke Kupper.

The AFP launched an investigation into Tabcorp in 2012, over a $200,000 payment made in 2009. Police alleged the payment had been made by Tabcorp to the family of Cambodian Prime Minister Hun Sen, as the gaming giant looked to expand its operations into the south-east Asian country.