Australian Retirement Funds Hold Over $10B in Gambling Shares, Study Finds
Major Australian Superannuation Funds Invest Billions in Gambling Sector
A recent investigation by SustainoMetric, commissioned by Australia’s Alliance for Gambling Reform, revealed that the country’s top 20 superannuation funds collectively hold close to AUD 14.8 billion (around USD 10.3 billion) in shares linked to gambling companies.
Key Insights from the Research
The analysis examined the direct equity holdings of these super funds along with their responsible investment policies. It identified investments in 198 publicly traded firms associated with the gambling industry. Altogether, these funds manage about AUD 1.18 trillion (approximately USD 820 billion) in listed equities, with gambling-related assets constituting just over 1%—valued at roughly USD 10.3 billion.
The study also highlighted that the actual financial exposure to gambling might be considerably larger. This is because the evaluation did not cover bond holdings, private equity stakes, or assets managed externally. Moreover, some diversified companies with gambling revenue were excluded due to strict classification rules.
Using this data, the Alliance for Gambling Reform questioned the effectiveness of current investment strategies aimed at minimizing gambling-related harm. The study found that most funds address gambling risks primarily by including ethical investment options.
Importantly, none of the superannuation funds met the highest benchmark of “Leading Practice.” Six were categorized as “Advanced,” six as “Basic,” while eight were classified as having “Limited” approaches to managing gambling-related investments.
Assessing the Adequacy of Current Measures
Amid findings from another study that over 3 million Australians have suffered harm due to gambling, the Alliance called for stronger safeguards. They urged super funds to recognize gambling as a significant social risk on par with industries like tobacco and alcohol, and called for consistent reporting standards across the sector.
These revelations come as lawmakers introduce new federal gambling reforms set to begin on January 1, 2027. These reforms focus on restricting betting advertisements, enhancing the BetStop self-exclusion program, and increasing action against illegal operators. However, they mainly target operators and consumer protections, without addressing the investment of mandatory retirement savings in gambling-related companies.
The SustainoMetric findings bring a new perspective, encouraging attention on how retirement savings are indirectly supporting gambling enterprises. This could fuel demands for policymakers to include superannuation investment rules in broader gambling harm reduction strategies and consumer protection reforms.
The Alliance for Gambling Reform has also recently advocated for banning inducements in online gaming, warning that promotional offers such as bonus bets may mislead users and increase gambling expenditure.
