Comprehensive Superannuation Assessment and Industry Exposure
Australia’s largest 20 superannuation funds hold a combined $14.8 billion in listed gambling-related companies, according to a landmark new index commissioned by the Alliance for Gambling Reform and undertaken by independent data analysts SustainoMetric. The research report, titled Bad Bets: How our superannuation companies are investing in gambling stocks, provides one of the first comprehensive assessments evaluating how the nation’s largest funds address gambling-related harm through their responsible investment practices.
Because the study focused exclusively on direct listed equity exposures under a strict classification approach and faced transparency limitations, analysts note that the true level of investment is likely to be significantly higher. Total exposure expands substantially when factoring in indirect investments across diversified entertainment and leisure groups, hotel and resort operators, casino-linked businesses, lottery and wagering providers, gaming technology firms, and alternative asset classes such as fixed income, private equity, and externally managed funds.
Fund Benchmarking and Responsible Investment Gaps
The study benchmarked 20 major funds against a structured framework evaluating current holdings, policy commitments, exclusions and screening, engagement and stewardship, and transparency and reporting. The findings reveal that most of Australia‘s largest super funds are performing only a basic or limited job of considering gambling harm in investment decisions.
None of the evaluated funds achieved a “Leading Practice” score of 80 to 100, proving that best practice in managing gambling-related harm is far from being realized. Only a minority of six funds secured an “Advanced” score between 60 and 80, showing more systematic integration across policies. Meanwhile, the majority received lower marks, with six funds scoring in the “Basic” range of 46 to 60 and eight funds falling into the “Limited” range of 20 to 40, indicating fragmented or early-stage approaches where gambling considerations are restricted to ethical products rather than embedded fund-wide.
The five funds identified with the largest direct gambling-related equity holdings are:
- AustralianSuper: $4.9 billion
- Australian Retirement Trust: $1.77 billion
- Colonial First State: $1.46 billion
- UniSuper: $1.11 billion
- Aware Super: $0.94 billion
Leadership Commentary and Regulatory Calls to Action
Martin Thomas, Chief Executive of the Alliance for Gambling Reform, stated that the findings would shock everyday Australians contributing to these funds without knowing their savings support gambling entities.
“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 urged the Australian superannuation industry to treat gambling as a material social risk within core Responsible Investment policies, matching the frameworks applied to tobacco and alcohol. He emphasized that funds must apply these considerations consistently across all investment options rather than isolating them within ethical products, while regulators must mandate standardized disclosure requirements to enhance transparency and comparability.
