Why we don’t invest in gambling

You win some, you lose more! On recent ads for gambling you might have seen that little disclaimer, part of an overhaul to try and address some of the harm caused by gambling. Now the government has taken a loss of its own, as it’s been accused of watering down a planned total ban on gambling advertising.  

The ban had widespread support in Parliament following a campaign spearheaded by the late Labor MP Peta Murphy. Murphy led a parliamentary committee that probed the harms of online gambling and won backing right across the political spectrum. But, more than a year on – still no ban!  

Politicians have reportedly been wined, dined and given donations by gambling execs and pressured by TV networks who are in panic mode. Now, instead of a total ban on gambling ads the proposed legislation has been watered down to a ‘cap’ on gambling advertising that falls far short of Murphy’s proposals.  

Australians are the world’s biggest gambling losers, according to Statista. That’s why we need those disclaimers on ads! Murphy’s report found that Australians lose $25 billion every year, with most gamblers at risk of some harm, including financial ruin, substance abuse, homelessness, domestic violence, mental illness and suicide.  

This is sustained by the sheer volume of gambling advertising; more than a million ads a year air on Aussie TV and radio alone.  

You could argue that gambling isn’t deadly like tobacco, weapons and climate change, and is an individual choice – but research shows that high-risk gambling directly affects six other people on average besides the gambler, and a gambling addiction soon stops feeling like a choice, anyway. Advertising makes this a lot worse. Gambling profits are also often implicated in money laundering and terror financing. 

Put simply, gambling is bad for Australia. Most gamblers want to gamble less, but frequent exposure to advertising – particularly through the fun, ‘harmless’ lens of sport – makes it much harder. Three in four kids think gambling is a normal part of sport, with two-thirds keen to try it.  Sound OK? Nah, not really. 

Gambling and gambling advertisements hurt people by keeping them stuck in a cycle of addiction. They also rack up a big cost for social services. A report found that, in Victoria alone, gambling’s cost to the community was $7 billion per annum. This means that while companies are setting their business strategies to profit from gambling addiction, our tax dollars and donations to charities are required to pay for the fallout from that addiction – privatising the profits while socialising the costs. That isn’t a healthy or sustainable system.  

But it is common practice to invest in those gambling companies. Many superannuation funds invest in gambling companies – even hiding in their 'responsible’ options.

Future Super doesn’t directly invest in gambling and has negative screening rules that exclude casinos, pokies and the manufacture of gaming products. This is because unsustainable business strategies, including those that rely on taxpayers and nonprofits to clean up the social harm they’ve externalised, carry investment risks as well as being unethical.  

Future Super’s investment strategy helps remind the government that growth doesn’t have to mean causing harm.  

Anyone affected by gambling can reach out to Gambling Help Online or call 1800 858 858.

See How We Invest for information about our screening and investment processes. Investments may be held indirectly via an Exchange Traded Fund (ETF) or Managed Fund (MF). All information is general in nature and does not take account of your personal objectives, financial situation or needs. Before deciding whether a particular product is appropriate for you, please read the relevant Product Disclosure Statement, Target Market Determination and Financial Services Guide available at www.futuresuper.com.au, and consider speaking with a financial adviser.