On April 25, 2025, the lively atmosphere at The Greenroof Hotel in Newcastle, Australia, was abuzz with patrons engaging in Two-up, a traditional Australian gambling game. However, beneath this veneer of entertainment lies a concerning reality, as highlighted by a recent study commissioned by the Alliance for Gambling Reform. This research unveiled that Australia’s 20 largest superannuation funds hold an astounding $14.8 billion in shares tied to publicly listed gambling companies.
The scope of this investment encompasses 198 gambling-related firms, illustrating a significant financial entanglement with an industry that many argue contributes to societal issues. The report, aptly titled “Bad Bets: How our superannuation companies are investing in gambling stocks,” raises critical questions about the transparency of these investments. Current disclosure requirements and voluntary standards are described as inadequate, leaving many to speculate that the actual level of exposure to gambling stocks could be even greater. This is particularly concerning as it does not account for indirect investments in diversified entertainment and leisure groups, hotel operators, or gaming technology firms, all of which may derive revenue from gambling activities.
Diving deeper into the findings, Australian Super, the nation’s largest superannuation fund, emerged as a glaring outlier, boasting a staggering $4.9 billion in gambling stock investments—more than double that of its competitors. This disproportionate exposure raises alarms about the ethical implications of such investments, especially given that the primary purpose of superannuation is to secure the financial future of Australians.
The study also evaluated how these funds address gambling harm, revealing a disconcerting landscape. The majority of funds received ratings classified as ‘Basic’ or ‘Limited,’ indicating that their approaches to managing gambling-related harm are often fragmented and underdeveloped. Only six funds achieved an ‘Advanced’ score, while none reached the ‘Leading Practice’ threshold. This disparity underscores the need for a more integrated approach to including gambling considerations across all levels of policy and investment processes.
Martin Thomas, the chief executive of the Alliance for Gambling Reform, expressed profound concern over these findings. He noted that Australians lose more to gambling per capita than any other nation—an eye-watering $32 billion annually. This statistic starkly illustrates the societal costs of gambling, which extend far beyond personal losses and into the realm of economic and social distress affecting communities across the country. “If we do this, superannuation funds can better align their investment strategies with long-term member interests,” Thomas posited, advocating for a shift towards responsible investment practices that prioritize social welfare.
The urgency of addressing gambling-related harm is further underscored by recent statistics indicating that one in three Australians now participate in gambling activities, a rise from 57 percent in 2019. The proportion of individuals at risk of gambling harm has also increased, from 11 percent to 15% over the same period. In response to this alarming trend, the federal government recently implemented new restrictions on gambling advertisements, limiting their presence on television and radio during certain hours, particularly around school pick-up times. Online advertising has also been curtailed, with strict age verification processes put in place to ensure that only adults are exposed to such promotions.
In light of these revelations, the call for superannuation funds to reevaluate their investment strategies has never been more pressing. By aligning their portfolios with ethical considerations and prioritizing the well-being of their members, these funds have the potential to contribute positively to the larger societal landscape. As the conversation around gambling and its ramifications continues to evolve, stakeholders from all sectors must engage in dialogue that prioritizes transparency, responsibility, and the overall health of Australian communities.
Reviewed by: News Desk
Edited with AI assistance + Human research
