Superannuation funds in Australia are investing workers’ retirement savings into companies from the gambling industry, including manufacturers of poker machines, casino and lottery operators, according to an analysis made by Guardian Australia.
Scrutinizing the portfolio holdings of the various options offered by the 10 biggest superannuation funds in the country, including their socially aware options, the media uncovered that over AU$4.2 billion ($2.82 billion) of retirement savings have been poured by the funds into the gambling industry.
The analysis based on data provided by the funds as of June 30, 2022, under the requirement for superannuation funds to provide details of their investments biannually introduced by the Morrison government, revealed that the country’s ten biggest funds have an aggregate shareholding of AU$1.67 billion ($1.12 billion) at the manufacturer of casino equipment Aristocrat Leisure.
AustralianSuper’s Gambling Holdings
AustralianSuper, Australia’s biggest superannuation, holds 6.6% of Aristocrat’s shares, with its most popular option, Balanced, holding an investment of approximately AU$921 million ($618.4 million) in the poker machine manufacturer, AU$624 million ($419 million) in Endeavour, the country’s biggest operator of poker machines, AU$148 million ($99.4 million) in Tabcorp and AU$661 million ($443.9 million) in Lottery Corporation that was spun out of Tabcorp in May.
AustralianSuper’s Balanced also has AU$103 million invested in casino operator SkyCity Entertainment and AU$4 million ($2.69 million) in another casino operator, Star Entertainment, which recently fell from grace with authorities and regulators in New South Wales and Queensland.
The fund’s Socially Aware option has AU$16 million ($10.7 million) in Aristocrat and nearly AU$45 million ($30.2 million) in four of the six biggest publicly listed gambling companies in the country.
AustralianSuper does not exclude particular industries other than tobacco, according to a spokesperson of the fund, who explained that the active engagement with the gambling sector will help ensure “high standards of responsible gaming and appropriate governance practices are in place.”
Aware Super’s Holdings
Aware Super, another of the biggest superannuation funds in the country, has an investment of AU$460 million ($308.9 million) in gambling companies, including AU$219 million ($147.1 million) via its high-growth option, despite positing itself as a wholly ethical fund.
When asked for comments, a spokesperson for Aware Super outlined that gambling was one of many sectors the fund is investing and for those investors who have ethical concerns, there is the fund’s socially responsible investment option that excludes exposure to gambling.
Rest’s Investments in Endeavour
The retail employee fund, Rest, has more than AU$400,000 ($268,600) of a total of AU$106 million ($71.2 million) held under its Sustainable Growth option invested in Endeavour shares, despite claiming that their investment scope excludes companies generating more than 5% of their revenue from gambling.
A spokesperson for the fund was convinced that the holding in Endeavour did not breach the gambling exclusion, outlining that all decisions had been made in the best financial interest of the fund members.
While there is nothing wrong with the superannuation funds’ investments in gambling business-wise, it is the moral side of the investments that is raising concerns, especially in the light of statistics showing that Australians lose in gambling AU$25 billion ($16.8 billion) annually while cases of problem gambling continue to increase.