Political donations from the gambling industry to major Australian parties have skyrocketed by over 600% in the past decade, with new analysis spotlighting a growing financial influence as debate intensifies over a potential ban on gambling advertising. The data, recently reviewed by the Parliamentary Library and sourced from the Australian Electoral Commission, indicates that contributions from gambling giants, particularly horse betting companies, climbed from $66,650 in 2013-14 to $488,000 in 2022-23 — a leap of 632%.
This surge in contributions has drawn heavy criticism from advocates for gambling reform and animal welfare, with Greens Senator Mehreen Faruqi condemning the funding as “blood money.” As the nation approaches the highly anticipated Melbourne Cup, Faruqi accused both the Labor Party and the Coalition of profiting from the “gambling-fuelled animal cruelty” that surrounds the racing industry. “Labor and the Liberals work for their donors and lobby groups,” she said. “They don’t care about the pain that gambling causes to so many in this country.”
From 2013-14 to 2022-23, eight prominent gambling companies collectively donated a total of $2.7 million to Australia’s major political parties. Labor received the largest share at $1.49 million, followed by the Liberal Party at $952,500 and the Nationals with $263,300. Tabcorp led the list of contributors, donating $1,016,995 over the decade, closely followed by Sportsbet, which contributed $823,050, and Responsible Wagering Australia (RWA), which gave $651,320.
A spokesperson for RWA, which formed in 2016 after the dissolution of the Australian Wagering Council, defended these political memberships as standard industry practice, noting that “like many major industries, RWA typically participates in political memberships rather than making donations.” According to the spokesperson, this approach facilitates discussions on relevant policy matters directly with policymakers. Nonetheless, donations from industry associations like RWA continue to be perceived as strategic tools for lobbying and policy influence.
The Albanese government has indicated a willingness to reform Australia’s electoral funding and donation laws, including possible spending and donation caps and lowering the disclosure threshold. Currently, donations surpassing the threshold must be disclosed by political parties in the financial year following the donation. However, while these reforms signal a step towards greater transparency, bipartisan support remains elusive.
Both Labor and Liberal parties have faced accusations of obscuring the depth of their ties with major donors. Parties can legally raise additional funds by hosting business forums, where access to senior politicians is granted through ticketed events and observer programs. Gambling companies, including Sportsbet, are often present at these forums. Sportsbet’s spokesperson addressed the company’s involvement, stating, “Our memberships to these forums are disclosed in accordance with the law, and our overall donations have decreased over each of the past three years.”
Despite such reassurances, critics argue that participation in these forums creates an opportunity for gambling companies to leverage relationships with political figures. This perception has fueled the ongoing debate on gambling reform, especially given the timing of recent disclosures and the upcoming Melbourne Cup — Australia’s most publicized horse racing event, which consistently raises concerns among gambling reform advocates and animal rights activists alike.
Gambling-related losses in Australia have reached alarming levels, increasing from $25.6 billion annually before the COVID-19 pandemic to $32 billion in the 2022-23 fiscal year. This trend has not only heightened public awareness around the consequences of gambling addiction but also intensified calls for a national conversation on advertising restrictions and harm reduction strategies.
Proponents of the gambling industry argue that its contributions go beyond politics, highlighting economic benefits to local communities where racing events are hosted. In a statement, a Sportsbet spokesperson emphasized, “Racing is the lifeblood of communities right around Australia, and Sportsbet makes a significant economic contribution to these communities.” The spokesperson added that the company’s partnerships with racing bodies and regulatory engagement are designed to ensure the sport can be “enjoyed responsibly for generations to come.”
However, anti-gambling advocates view these assertions as attempts to downplay the industry’s role in perpetuating gambling addiction and its social consequences. According to Faruqi, the harms caused by the gambling industry, including the well-documented animal welfare issues associated with horse racing, outweigh any perceived economic contributions. “They don’t care that a horse gets killed every two days on race tracks in this anachronistic, grotesque festival of cruelty,” she remarked, emphasizing that political alliances with the gambling industry create a barrier to meaningful reform.
The Melbourne Cup, scheduled to run its 164th race this Tuesday, remains one of Australia’s most watched sporting events, though its popularity has seen a noticeable decline in recent years. A recent Essential poll indicates that only 11% of Australians reported “high interest” in the Cup, down five percentage points from 2022. Activists have attributed this drop to increased public awareness of animal welfare concerns, including the rising number of fatalities and injuries to horses.
The sentiment has been echoed by organizations such as the Coalition for the Protection of Racehorses, which regularly highlights the risks that racehorses face. These criticisms have even led some major sponsors to reconsider their involvement in horse racing, sparking further debate on whether cultural attitudes towards the event are shifting away from its historical enthusiasm.
Animal welfare groups argue that the Melbourne Cup is emblematic of a larger issue within the gambling and racing industries. According to Faruqi, the major parties’ financial ties to these industries only prolong what she described as an “anachronistic, grotesque festival of cruelty.” She urged both Labor and the Coalition to sever their relationships with gambling donors if they are serious about tackling the “scourge of gambling.”
Despite rising public concern, Australia’s political landscape remains fraught with complexities regarding gambling reform. While some state governments, like those in Victoria and New South Wales, have begun implementing gambling restrictions, such as poker machine limits, federal-level reforms are less advanced. The Albanese government’s proposed reforms, including donation caps and greater transparency measures, would represent a significant step, though experts warn that entrenched interests may hinder progress.
Political analysts note that gambling reform has always been a contentious issue due to the considerable revenue that gambling activities contribute to both government coffers and local economies. However, with gambling-related losses in Australia reaching unprecedented levels, reform advocates argue that the time for action is long overdue. Measures such as a total ban on gambling advertising, akin to Australia’s prohibition on tobacco advertising, have been suggested as potential avenues to curb gambling-related harm.
The National Consumer Protection Framework for Online Wagering, introduced in 2018, was an early attempt at creating uniform protections for online gambling but has since been criticized for its limited reach and enforcement. Recent data indicates that problem gambling rates have risen despite the framework, prompting stakeholders to push for stricter legislation.
The issue of gambling donations has highlighted an ideological divide in Australia’s political spectrum. The Greens, led by Senator Faruqi on this issue, have championed an anti-gambling platform, pressing both Labor and the Coalition to disentangle themselves from gambling industry contributions. Their position advocates for a society less influenced by gambling entities and more attuned to the risks associated with gambling addiction and animal welfare.
Meanwhile, proponents of the gambling industry maintain that they follow all regulatory requirements, ensuring that donations and memberships are disclosed in compliance with the law. In their view, the presence of gambling companies in political and economic discussions is no different from other industries seeking policy representation.
As the debate around gambling reform intensifies, many stakeholders await the Albanese government’s next steps on electoral funding reform. Public opinion appears to be shifting, with an increasing number of Australians expressing concern over the societal impact of gambling. Whether this mounting pressure will translate into tangible legislative action remains to be seen, but with gambling losses and industry donations at record levels, the issue has proven impossible for Australia’s political leaders to ignore.
As Australia’s political parties face heightened scrutiny over their ties to gambling companies, the conversation surrounding electoral funding transparency and gambling reform will likely shape future political agendas. The outcome of these discussions may well determine the extent to which the gambling industry’s influence in Australian politics can be curbed. For now, the Australian public is left to question where the line should be drawn between economic interests and the ethical responsibilities of its leaders.
