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How Australia’s Gambling Lobby has Successfully Avoided Any Reform

Political donations, lobbying, and community influence help gambling companies block major policy reforms and protect huge profits.

Gambling businesses in Australia have a long history of effectively influencing and controlling government policy and regulation over a national pastime that makes Australians the world’s biggest gamblers per capita. The gambling industry can wield that level of control because it turns over AU$244.3 billion (2022–23) and generates more than AU$10 billion a year in gambling tax revenue to financially stretched state governments. This substantial financial contribution from gambling provides access to government decision-makers.

Meanwhile, gambling businesses have adopted parts of the tobacco industry’s “corporate playbook” to resist regulation. These tactics have allowed the gambling industry to effectively avoid regulation and instead allowed them to expand their highly profitable commercial activities.

Gambling businesses are well resourced because the products they sell are extremely profitable, and they have worked hard over many years to ensure gambling remains deeply embedded in Australian social life. A key development toward that came with the introduction of gambling machines, known as poker or “pokie” machines, into suburban social clubs from 1956 onward, and later into pubs and hotels. This helped make gambling seem like a normal part of community life. In most Australian states and territories (except Western Australia, which restricts poker machines to a single casino), poker machines are widespread and operate largely without question in venues that are also used for family meals and social and sporting activities. 

The development of these social clubs in New South Wales was particularly important. They helped provide sporting and recreational facilities in new postwar suburbs at a time when governments were unable to provide enough financial support for community infrastructure. This gave the clubs a strong community image and helped make their gambling activities more acceptable.

This approach continues today. It is not unique to Australia. Gambling businesses around the world use similar strategies, sometimes described as the “alibi model.” Clubs NSW, the largest gambling network in Australia, has carefully maintained this tradition and uses it whenever possible to promote the image of these social clubs as organizations that give generously to their communities. The close connection between local community clubs, sporting organizations, and some of Australia’s largest commercial gambling operators makes it harder to challenge the normalization and influence of the gambling industry.

Gambling operators are also among Australia’s biggest political donors, according to research. Political donations can provide access to decision-makers, which can then give gambling businesses greater influence over policies that affect them. Australia has also developed a strong “revolving door” between politics and the gambling industry. 

There are some restrictions on politicians taking jobs after leaving office, but the definition of a “lobbyist” is narrow. It generally excludes people working directly for companies or industry associations to influence government. As a result, many people involved in lobbying are not subject to the same rules. Former senators, premiers, ministers, political advisers, and senior public officials have taken jobs with some of Australia’s largest gambling companies, sometimes soon after leaving public office.

Hospitality is another form of influence. This can range from MPs given private boxes at major sporting events, or the sports minister attending football grand finals and tickets for MPs attending the........

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