Twenty of Australia’s largest superannuation funds have invested over AUD 14.8 billion (roughly $10.3 billion) in gambling-related stocks, based on a recent study by SustainoMetric for the Alliance for Gambling Reform. This eye-opening figure highlights a major stake within the $820 billion in listed equities these funds manage. Gambling investments account for just over 1% of their portfolio.
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Details of the Investments
SustainoMetric analyzed these funds’ direct equity holdings and responsible investment practices. They identified stakes in 198 publicly traded companies with ties to the gambling sector. However, this figure might not tell the whole story—bonds, private equity, and externally managed investments weren’t included in the analysis. The study also excluded diversified companies unless they met strict gambling revenue criteria. According to the Alliance for Gambling Reform, this raises questions about how these funds handle gambling-related harm. The study found ethical investment options were the primary strategy to address gambling risks. Notably, none of the funds received the coveted “Leading Practice” status. Six funds earned an “Advanced” rating, another six were deemed “Basic,” and eight fell into the “Limited” category.
Calls for Stronger Measures
The Alliance for Gambling Reform isn’t taking this lightly. They’re pushing for action, citing research that shows over 3 million Australians have suffered due to gambling. The group argues that gambling should be viewed as a material social risk, akin to tobacco and alcohol. They’re advocating for standardized disclosures across the sector to better understand the industry’s impact. Federal legislators are in the midst of introducing new gambling reforms, with two bills in play that would take effect on January 1, 2027. These focus on limiting wagering ads, bolstering the BetStop self-exclusion scheme, and clamping down on illegal operators. But there’s a gap—these reforms don’t touch on how compulsory retirement savings are invested in gambling enterprises.
Regulatory Context and Potential Impact
SustainoMetric’s data could well redirect focus from just operators and ads to the financial mechanisms underpinning the gambling sector. By spotlighting the role of retirement savings, there’s pressure on policymakers to rethink superannuation fund rules as part of broader gambling reform. The Alliance for Gambling Reform has been vocal, too. They’ve previously called for a ban on iGaming inducements, citing “bonus bets” as troubling promotions that muddle users into spending more than intended. All gambling legislation is under a microscope both in Australia and internationally.
Next Steps
What happens next is crucial. The spotlight is now on lawmakers to consider the wider implications of gambling-related investments by super funds. While the legislative focus currently remains on advertising and consumer protection, it’s clear that investment practices may soon come into play—potentially reshaping the discourse on gambling-related harm. Attention could shift during the next legislative session, as the industry continues to grapple with regulatory changes.
David Harrison stands tall in gambling journalism, marrying his firsthand casino experiences with a deep understanding of betting psychology. His articles transform complex gambling jargon into engaging tales of strategy and chance, making the world of betting accessible and enjoyable. David’s knack for narrative extends beyond print, making him a sought-after speaker on gambling trends and future bets. In the realm of gambling, David is both a scholar and a storyteller, captivating readers and listeners alike.
