Australia's 20 largest superannuation funds are collectively holding nearly $15 billion in gambling-related investments, despite mounting evidence of the industry's social harm — and growing public pressure on funds to apply the same ethical standards they use for tobacco and alcohol.
A report released by the Alliance for Gambling Reform has found the sector holds $14.8 billion in gambling stocks, raising serious questions about the gap between funds' stated responsible investment policies and their actual portfolio decisions.
Who holds the most — and what they're invested in
The nation's largest superannuation fund, Australian Super, carries the biggest exposure at $4.9 billion — more than double that of any other fund on the list. Australian Retirement Trust, Colonial First State, UniSuper and Aware Super round out the top five.
Gambling hardware and software giant Aristocrat Leisure is among the companies receiving retirement savings flows. A spokesperson for Australian Super said the fund does not apply investment screens to gambling companies outside of its dedicated Socially Aware option.
"We invest to help members achieve their best financial position in retirement," the spokesperson said, adding that the fund engages with ASX-listed companies to better understand their responsible gaming and governance practices.
A 'blind spot' in responsible investment frameworks
Martin Thomas, chief executive of the Alliance for Gambling Reform, said gambling represented a clear "blind spot" for the superannuation sector. Despite many funds maintaining responsible investment frameworks, their approaches to gambling-related risks remain, in his words, "limited, inconsistent and largely inadequate."
"There's starting to be a realisation just of how socially damaging gambling is," Thomas said. "We see bankruptcies, mental health issues, marriage break-ups."
He pointed to what he described as an inconsistency in how gambling harm is treated compared with other harmful industries. Tobacco and alcohol companies are routinely screened out of superannuation portfolios by many funds, yet gambling — an industry associated with comparable and well-documented mental health consequences — largely escapes the same scrutiny.
Thomas acknowledged that gambling investments make up a relatively small share of funds' total portfolios, which can run into the hundreds of billions of dollars. That, he argued, makes reform all the more achievable.
"There is so much opportunity out there for them to do the right thing," he said.
Australians losing more per capita than any other nation
The report lands against a striking backdrop: Australians lose more money per capita to gambling than any other country in the world, collectively surrendering around $32 billion a year. That figure underscores why advocates argue the investment community — and superannuation funds in particular — should not be passively profiting from the industry.
Thomas was careful to distinguish between prohibition and accountability. "We're not looking to ban gambling; we just think it's a harmful legal adult product and should be regulated," he said. "But we do think it should be shunned by the investment community, particularly super funds, particularly because we're all made to contribute to these super funds."
He urged Australians who are concerned to contact their fund directly and ask how much of their retirement savings is being directed into gambling stocks.
Government moves on gambling reform — but super funds not yet in the frame
The report comes as the federal government pursues a series of gambling-related reforms, though none directly targeting superannuation investment decisions.
Prime Minister Anthony Albanese has confirmed his government intends to introduce legislation limiting gambling advertising across media platforms, including online, with restrictions applying unless users have been verified as aged 18 or over.
In the federal budget, Treasurer Jim Chalmers announced $39 million over four years to expand financial counselling services for those affected by gambling harm. A further $28.7 million has been allocated to BetStop, Australia's national self-exclusion register, in part to strengthen data-matching systems. The government has also committed $22.4 million to develop a national online awareness campaign to encourage people affected by gambling to seek support.
While these measures signal a shift in the government's approach to the broader gambling ecosystem, the Alliance for Gambling Reform's report suggests that Australia's political landscape may need to go further — extending scrutiny to the financial sector's role in sustaining the industry through passive and active investment.
For now, the onus appears to rest largely with individual fund members to ask questions and, where possible, opt into more ethically screened investment options.
Readers seeking support for gambling concerns can contact the National Gambling Helpline on 1800 858 858.
