Gambling Exposure Puts Australian Super Funds Under Scrutiny
Australia’s 20 largest superannuation funds held A$14.8 billion in shares of gambling-linked companies, according to a report commissioned by the Alliance for Gambling Reform and conducted by SustainoMetric.
The analysis identified investments in 198 listed gambling-related companies. Together, the funds held about A$1.18 trillion in listed equities. Gambling-related holdings represented more than 1% of the funds’ combined listed equity investments.
Five Funds Hold the Largest Positions
AustralianSuper had the biggest exposure with A$4.9 billion invested. Australian Retirement Trust came second with A$1.77 billion. Colonial First State had A$1.46 billion, UniSuper A$1.11 billion, and Aware Super had A$940 million.
The analysis included only direct investments in shares. Bonds, private equity and funds managed by outside investment managers were not considered. The study also excluded diversified companies whose gambling-related revenue fell outside its strict classification criteria. Therefore, the total A$14.8 billion should be seen as the lower limit.
Responsible Investment Policies Vary
SustainoMetric analyzed how well the funds tackled the issue of gambling risks by way of their investment policies, screening, stewardship, transparency, and public reporting practices. None of the 20 funds reached the report’s highest category, Leading Practice:
- Six of those funds rated Advanced;
- Six were rated Basic;
- Eight of those got Limited ratings.
The findings suggest that gambling-related restrictions are often confined to ethical or sustainable investment options rather than applied across entire portfolios.
HESTA received the highest policy score at 68. REST and UniSuper each scored 65, while AustralianSuper received 57 despite having the largest gambling-related equity exposure. The Alliance for Gambling Reform suggests that funds should treat gambling issues as material social risks just like tobacco and alcohol.
Debate Moves Beyond Gambling Advertising
The report comes as Australia considers tighter federal gambling controls. Two bills introduced on July 2 propose new limits on wagering advertising, restrictions involving influencers, and changes to the BetStop self-exclusion framework. The government is aiming to implement the advertising changes from January 1, 2027, although the bills remain subject to parliamentary approval.
These reforms are geared towards operators, advertisements, and consumer protection. However, they fail to address the issue of how assets held within Australia’s compulsory superannuation system are invested in gambling-related companies.
Pressure Shifts to Fund Disclosure
This research may go further than the usual discussion about the products and promotions offered in gambling. Superannuation trustees must act in the best financial interests of their members. Responsible-investment commitments create additional expectations around transparency and risk management.
For now, the findings are more likely to increase pressure for better disclosure than to trigger compulsory divestment. Without consistent reporting across the sector, members have little ability to compare how much gambling exposure is held within their retirement portfolios.