Australia’s 20 largest superannuation funds collectively hold at least A$14.8 billion in listed gambling-related companies, according to a newly published industry study.
The Alliance for Gambling Reform commissioned the research, titled Bad Bets: How our superannuation companies are investing in gambling stocks, conducted by sustainability data firm SustainoMetric.
The study examined direct equity holdings and responsible-investment policies across all 20 funds, identifying investments spread across 198 listed gambling-related companies.
In total, the 20 funds held approximately A$1.18 trillion in listed equities, with gambling-related shares representing slightly more than 1% of that combined figure.
AustralianSuper recorded the largest exposure at A$4.9 billion, followed by Australian Retirement Trust with A$1.77 billion invested in gambling-related stocks.
Colonial First State held A$1.46 billion, UniSuper had A$1.11 billion, and Aware Super completed the top five with A$940 million in gambling-related equity.
The report cautioned that the true exposure could be considerably larger, as calculations excluded bonds, private equity, externally managed funds, and diversified businesses with gambling revenues falling outside strict classification criteria.
None of the 20 funds reached the report’s highest category, labelled Leading Practice, when assessed on policies designed to reduce gambling harm across their portfolios.
Six funds received an Advanced rating, six were classed as Basic, and eight fell into the Limited category, painting a mixed picture across the superannuation sector.
HESTA recorded the highest policy score at 68, with REST and UniSuper following on 65, while AustralianSuper scored 57 across the assessment criteria.
The assessment covered policy commitments, investment screening, stewardship, transparency and reporting, finding that gambling risks were often only addressed through ethical investment options rather than whole-of-fund approaches.
The Alliance for Gambling Reform wants funds to treat gambling as a material social risk, comparable to the way tobacco and alcohol are handled across responsible investment frameworks.
The organisation also called for standardised disclosure across the superannuation sector, including measurable screening thresholds, whole-of-fund policies and public reporting of aggregate gambling exposure.
The report’s findings arrive as the federal government advances its own gambling reform programme, with two bills introduced on 2 July and changes scheduled to take effect from 1 January 2027.
That legislative package restricts wagering advertisements, strengthens BetStop, expands enforcement against illegal operators, and targets harmful online lottery products across the country.
However, the government’s 2026 package adopted narrower advertising limits rather than a complete prohibition, and did not establish the national gambling regulator recommended by a 2023 parliamentary inquiry.
That inquiry produced 31 recommendations following an examination of online gambling harm, though anti-gambling campaigners have complained that only a fraction were ultimately accepted.
The federal bills focus primarily on operators, advertising and consumer protection, and do not address how compulsory retirement savings are invested directly into gambling businesses.
That gap gives the superannuation study broader significance, shifting part of the reform debate away from gambling products themselves and toward the capital actively supporting them.
Australians may ultimately face tighter gambling controls as consumers while simultaneously remaining investors in the same sector through their compulsory retirement savings.
