Australia’s biggest 20 superannuation funds hold $14.8 billion in listed gambling-related companies, according to a landmark new index, believed to be the first of its kind commissioned by the Alliance for Gambling Reform.
The research notes that, because there is limited transparency and the study only looked at gambling company shares, the true level of investment is likely to be much higher. This means Australia's largest super funds may have significantly greater investments in gambling companies than the report was able to identify.
The report found that most of Australia's biggest super funds are doing only a basic or limited job of considering gambling harm when making investment decisions.
The Report, Bad Bets: How our superannuation companies are investing in gambling stocks, presents one of the first comprehensive assessments of how Australia’s largest superannuation funds are addressing gambling-related harm through their responsible investment practices.
Commissioned by the Alliance for Gambling Reform, and undertaken by independent data analysts SustainoMetric, the study benchmarks 20 of the country’s largest funds against a structured framework covering current gambling investment holdings, policy commitment, exclusion and screening, engagement and stewardship, transparency and reporting.
Among its troubling findings is that our biggest fund, Australian Super, has more than double the exposure to gambling stocks than others, with holdings of $4.9 billion.
The chief executive of the Alliance for Gambling Reform, Martin Thomas, said the findings would alarm and horrify Australians who contribute to these funds and have no idea they are actually supporting gambling.
“Australia loses more to gambling on a per capita basis than any other country in the world ($32 billion) and now we find that our biggest superannuation funds are actually investing in companies that are leading to economic and social misery across our communities,” Mr Thomas said.
The five funds with the biggest gambling-related equities were:
- Australian Super $4.9 billion
- Australian Retirement Trust $1.77 billion
- Colonial First State $1.46 billion
- UniSuper $1.11billion
- Aware Super $0.94 billion
Note: These figures reflect only direct listed equity exposures captured under a strict classification approach. Current disclosure requirements and voluntary standards make it impossible to determine the full extent of gambling exposure, with total exposure likely to be much higher when considering indirect investments through diversified entertainment and leisure groups, hotel and resort operators, casino-linked businesses, lottery and wagering providers, gaming technology firms, and other companies with gambling-related revenue streams. In addition, many superannuation funds will also have exposure through other asset classes including fixed income, externally managed funds, and private equity investments that were outside the scope of this study.
The research reveals uneven and generally underdeveloped approaches across the top 20 super funds in Australia when it comes to investing to reduce gambling harm.
“No fund achieved a “Leading Practice” score (80-100), indicating that best practice in managing gambling-related harm remains a long way from being achieved,” the report said.
“Only a minority of funds (six) were assessed as an “Advanced” score (60-80), demonstrating more systematic integration of gambling considerations across policy and investment processes.
“The majority of funds were rated “Basic” or “Limited”, with six funds scoring in the Basic range (46-60) and eight funds in the Limited range (20-40), indicating fragmented, option-specific, or early-stage approaches where gambling-related considerations are often confined to ethical or sustainable products rather than embedded across fund-wide investment governance.”
Mr Thomas said the results were a wake-up call to the Australian superannuation industry to explicitly recognise gambling as a material social risk within core Responsible Investment policies in the same way as tobacco and alcohol.
“Funds should apply gambling-related considerations consistently across all investment options, not only sustainable or ethical products and clearly articulate how gambling risk is assessed, managed, and escalated at a whole-of-fund level,” he said.
“Regulators must do more to require standardised disclosure of aggregate exposure to harmful and controversial sectors, including gambling, to improve comparability across funds.”
Mr Thomas urged Australians to actively engage with superannuation funds to understand how retirement savings may be exposed to harmful sectors such as gambling.
“If we do this, superannuation funds can better align their investment strategies with long-term member interests, strengthen responsible investment practices, and contribute to positive social outcomes for the benefit of all Australians,” he said.
About us:
The Alliance for Gambling Reform is a national advocacy organisation working to reduce gambling harm in Australia. We partner with other organisations and with local councils to reduce the alarming level of gambling harm in Australia, we work to change the laws and rules governing the gambling industry. We do not seek to ban gambling. Rather we seek to influence government to minimise the harmful behaviours of the gambling industry and to give voice to those who are impacted by gambling harm.
Contact details:
The Alliance for Gambling Reform is Available for Interview:
Martin Thomas is available for interview on 0477 340 704