Australian Super Funds Gambling Stocks: A$14.8bn Exposure in 2026 Report

Australia's 20 largest superannuation funds hold at least A$14.8 billion (approximately US$10.3 billion) in shares of gambling-related companies, according to a report commissioned by the Alliance for Gambling Reform and researched by sustainability data firm SustainoMetric, released Thursday, July 23, 2026. AustralianSuper alone accounts for A$4.9 billion of that exposure, more than any other fund, while gambling stocks still make up just over 1 percent of the funds' combined A$1.18 trillion in listed equities.

Key facts

• Australia's top 20 super funds hold A$14.8 billion in gambling-related shares, about 1.2 percent of their combined listed equities (Source: SustainoMetric report for the Alliance for Gambling Reform, July 2026).
• AustralianSuper is the single largest holder at A$4.9 billion, ahead of Australian Retirement Trust's A$1.77 billion and Colonial First State's A$1.46 billion (Source: CasinoBeats).
• Australians lose an estimated A$32 billion a year gambling, among the highest per-capita losses in the world, a figure the Alliance says makes fund exposure to the sector a governance issue, not just a financial one (Source: Alliance for Gambling Reform, reported by the Canberra Times).

How much do Australian super funds invest in gambling stocks?

Australia's 20 largest superannuation funds together hold at least A$14.8 billion in gambling-linked equities, equal to roughly US$10.3 billion at current exchange rates. That is just over 1 percent of the A$1.18 trillion these same funds hold in total listed equities, according to the SustainoMetric analysis commissioned by the Alliance for Gambling Reform. The researchers describe A$14.8 billion as a floor rather than a ceiling, since the study only counted direct equity holdings in publicly listed companies and excluded bonds, private equity, externally managed mandates and diversified businesses whose gambling revenue did not meet strict classification thresholds.

Which pension fund holds the most gambling stock?

AustralianSuper, the country's largest superannuation fund with roughly A$155 billion (about US$155 billion) in assets, holds an estimated A$4.9 billion in gambling-related shares, more than any other fund in the study. The next four largest holders are Australian Retirement Trust at A$1.77 billion, Colonial First State at A$1.46 billion, UniSuper at A$1.11 billion, and Aware Super at A$940 million, together accounting for more than two thirds of the total A$14.8 billion identified across all 20 funds.

Fund	Gambling stock holdings (AUD)	Approx. holdings (USD)
AustralianSuper	A$4.9 billion	US$3.4 billion
Australian Retirement Trust	A$1.77 billion	US$1.2 billion
Colonial First State	A$1.46 billion	US$1.0 billion
UniSuper	A$1.11 billion	US$770 million
Aware Super	A$940 million	US$650 million

Who commissioned and produced this report?

The report, titled "Bad Bets: How our superannuation companies are investing in gambling stocks," was commissioned by the Alliance for Gambling Reform, an Australian advocacy group, and researched by SustainoMetric, a sustainability data and analytics firm. It examined direct holdings across 198 publicly listed companies with meaningful gambling-sector revenue, spanning casino operators, lottery companies, sports betting firms and gaming technology suppliers.

What companies count as gambling stocks in the study?

The 198 companies tracked include Australian gaming technology giant Aristocrat Leisure, the ASX's 16th largest listed company with a market capitalization of roughly US$26 billion, whose shares have risen about 7.4 percent over the past six months. Other Australian names captured in the broader gambling-linked equity market, worth a combined US$43 billion or about 2 percent of the entire ASX, include The Lottery Corporation, Light and Wonder, and wagering operator Tabcorp, valued at roughly US$1.4 billion, according to CasinoBeats' analysis of the underlying holdings data.

Which funds scored best and worst on gambling investment governance?

SustainoMetric also rated each fund's governance practices around gambling-linked investments, and no fund reached the top "Leading Practice" tier. HESTA scored highest among funds reviewed at 68 out of 100, followed by REST and UniSuper tied at 65, and AustralianSuper at 57. Overall, six funds were rated "Advanced," six "Basic," and eight fell into the lowest "Limited" category, meaning the majority of Australia's largest retirement funds have only partial or minimal policies governing gambling-sector exposure.

Why does roughly 1 percent of a portfolio matter?

A 1.2 percent allocation sounds small against a A$1.18 trillion asset base, but in absolute terms it still represents A$14.8 billion of ordinary Australians' retirement savings directly invested in an industry the Alliance for Gambling Reform says causes measurable social harm. The group argues the relevant comparison is not the percentage of the portfolio but the precedent already set by tobacco: most major super funds have excluded or heavily restricted tobacco holdings for years on harm grounds, while gambling, despite comparable per-capita losses, has faced no equivalent standard.

What does the Alliance for Gambling Reform want funds to do?

The Alliance is calling for superannuation funds to treat gambling as a material social risk on par with tobacco and alcohol, with standardized, sector-wide disclosure of gambling-linked holdings rather than the current patchwork of voluntary reporting. Martin Thomas, Chief Executive of the Alliance for Gambling Reform, said the group is not seeking an outright ban on the sector but a higher standard of stewardship from funds managing other people's retirement savings.

"We're not looking to ban gambling, we just think it's a harmful legal adult product," said Martin Thomas, Chief Executive of the Alliance for Gambling Reform. "There's starting to be a realisation just of how socially damaging gambling is. We see bankruptcies, mental health issues, marriage break-ups."

How have the funds responded?

AustralianSuper, the largest single holder identified in the report, defended its approach to gambling-linked holdings rather than committing to divest. A spokesperson for the fund said, "We invest to help members achieve their best financial position in retirement," adding that AustralianSuper "engage[s] with certain ASX-listed companies either directly or with other investors to better understand their initiatives to deliver responsible gaming practices and appropriate governance practices," according to the Canberra Times.

How does this compare with Australia's own gambling harm data?

The pension fund findings land alongside separate Australian research showing an estimated 3.3 million Australians experience gambling-related harm, a figure iGaming Daily News reported on in July 2026. Australians lose roughly A$32 billion a year on gambling in total, among the highest rates of per-capita gambling loss anywhere in the world, giving the Alliance's "material social risk" argument a domestic backdrop beyond the investment figures alone.

Is gambling exposure in retirement funds unique to Australia?

No. Major UK asset managers show comparable patterns: BlackRock holds a stake of more than 4 percent in Entain and provides pension services to roughly 13 million Britons, while Vanguard holds stakes of between 3.8 percent and 5.41 percent in both Entain and Flutter Entertainment on behalf of around 700,000 British pensioners. South Korea's National Pension Service held about US$3.71 billion in combined alcohol, gambling and tobacco stocks as of 2022, including stakes above 5 percent in Kangwon Land and above 10 percent in Lotte Tour Development, while the Canada Pension Plan Investment Board, managing roughly US$564 billion, owns close to 31 percent of sports betting data supplier Sportradar.

What has industry reaction to the report been?

Fund managers quoted anonymously in trade coverage of the report have pointed to the practical difficulty of excluding large, liquid, index-weighted companies like Aristocrat Leisure purely on ethical grounds without a formal environmental, social and governance (ESG) mandate requiring it. One London-based financial expert told CasinoBeats that "if you're a fund manager trying to put a portfolio together without an ESG brief, it's hard to turn your nose up at high-cap companies, even if they are gambling firms," reflecting the tension between fiduciary return obligations and the Alliance's harm-based argument.

What happens next for superannuation and gambling stocks?

Australia's federal gambling reform legislation, introduced in July 2026 and due to take effect January 1, 2027, focuses on operators and advertising restrictions rather than institutional investment practices, meaning superannuation exposure to gambling stocks is not currently addressed by incoming law. The Alliance for Gambling Reform is pushing for that to change through direct pressure on fund trustees and standardized disclosure, while funds such as AustralianSuper have so far favored shareholder engagement over divestment as their preferred response.

Frequently asked questions

How much do Australian super funds hold in gambling stocks?

Australia's 20 largest superannuation funds hold at least A$14.8 billion, about US$10.3 billion, in gambling-related shares, according to a July 2026 report from the Alliance for Gambling Reform and SustainoMetric.

Which super fund has the biggest gambling stock exposure?

AustralianSuper has the largest exposure of any fund studied, holding an estimated A$4.9 billion in gambling-related shares.

What gambling companies are super funds invested in?

The study tracked 198 listed companies with gambling-sector revenue, including major holdings in Aristocrat Leisure, The Lottery Corporation, Light and Wonder and Tabcorp.

Are any Australian super funds divesting from gambling stocks?

The report found no fund achieved a "Leading Practice" governance rating, and funds such as AustralianSuper have said they prefer to engage with gambling companies on responsible practices rather than divest.

Does Australia's incoming gambling law affect super fund investments?

No. The gambling reforms taking effect January 1, 2027 target operators and advertising, not the investment practices of superannuation funds.

Updated July 2026.