Australian Retirement Funds Hold Over $10B in Gambling Shares, Study Finds

According to a study commissioned by Australia’s Alliance for Gambling Reform and conducted by SustainoMetric, the country’s 20 biggest super funds collectively hold at least AUD 14.8 billion (about $10.3 billion) in listed gambling-related investments.

Here’s What the Study Found

The study analyzed the funds’ direct equity holdings and responsible-investment policies. It identified investments in 198 publicly listed companies with links to the gambling sector. Collectively, the 20 funds held approximately AUD 1.18 trillion (about $820 billion) in listed equities. Gambling-related investments accounted for just over 1% of these holdings, or about $10.3 billion.

SustainoMetric’s data also suggest that the funds’ actual exposure to the gambling sector may be significantly higher, as the analysis did not include bonds, private equity holdings, or externally managed investments. It also excluded diversified companies with gambling-related revenue that did not meet the study’s strict classification criteria.

Taking this data into account, the Alliance for Gambling Reform questioned the funds’ approaches to investing in ways that reduce gambling-related harm. SustainoMetric’s study found gambling risks were addressed most often just through ethical investment options. 

Furthermore, none of the funds achieved the report’s highest ranking, classified as “Leading Practice.” Six funds received an “Advanced” rating, another six were rated “Basic,” and the remaining eight were placed in the “Limited” category. 

Is What’s Being Done Enough?

Considering another recent study that showed that over 3 million Australians were hurt by gambling, the Alliance for Gambling Reform called for stronger measures to protect users. It argued that funds should treat gambling as a material social risk, similar to tobacco and alcohol, and urged for a standardized disclosure across the sector.

The new data comes as legislators are moving with another gambling reform as two federal bills were introduced earlier this month, with the changes set to take effect from January 1, 2027. They aim to place tighter limits on wagering advertising, strengthen the BetStop self-exclusion scheme, and increase enforcement action against illegal operators. However, the package is primarily focused on gambling operators, advertising and consumer protection and does not address the investment of compulsory retirement savings in gambling-related companies.

SustainoMetric’s data, however, could shift attention beyond gambling operators and advertising practices by highlighting the role of retirement savings in funding gambling-related companies. It may also increase pressure on policymakers to consider superannuation investment rules as part of broader gambling harm and consumer protection reforms.

Some other recent efforts by the Alliance for Gambling Reform include the group asking legislators to ban iGaming inducements, citing the dangers of promotions offering “bonus bets,” as they argue they confuse users, leading to increased spending.