Federal government invests millions in pokie giant Aristocrat Leisure and other gambling companies

A controversial poker machine giant tops the list of gambling companies in which the federal government has invested hundreds of millions of dollars.

The federal government is funnelling hundreds of millions of taxpayer dollars into some of the biggest gambling companies at home and abroad, with the lion’s share invested in a controversial poker machine giant.

The investments have been made with the Australian Future Fund, tasked with growing the country’s wealth.

According to latest figures obtained by SA Greens senator Barbara Pocock, the government’s sovereign wealth fund has holdings worth more than $200m in Sydney-based Aristocrat Leisure – one of the world’s largest slot machine manufacturers.

The Rose Tattoo poker machine from Aristocrat on display at the Australian Gaming Expo at Darling Harbour in Sydney in 2009. The 1980s rocker Angry Anderson allowed the gaming company to make a poker machine with his image on it.

It also has $92.2m invested in The Lottery Corporation, $17.3m in Tabcorp, $13.6m in casino operator Star Entertainment Group and $8m in lottery company Jumbo Interactive.

Future Fund, which “manages money on behalf of the Australian federal government”, also has significant investments in American casinos, with nearly $3m tied up in MGM Resorts International, $1.5m in Las Vegas Sands Corp and nearly $800,000 in Caesars Entertainment.

About $2m is held with global sports betting giant Entain, bringing the total amount invested in gambling companies to at least $339m.

Senator Pocock said investing taxpayer money in these companies would perpetuate social issues caused by gambling addiction.

MGM Resorts International operates the Bellagio luxury resort and casino on the Las Vegas Strip.

SA senator Barbara Pocock has attacked the Future Fund’s investment decisions.

“If you are investing our funding, you should not be causing harm, which the public sector and the public purse then has to clean up, assisting people who are negatively affected and families that are negatively affected (by gambling addiction),” Senator Pocock said.

Independent MP Rebekha Sharkie, who is pushing for crackdowns on online gambling in parliament, said: “I really do think it’s an appalling decision by the Future Fund and I very much urge them to … question whether those investments create good in society or harm in society”.

Finance Minister Katy Gallagher said the Future Fund’s investment decisions were a matter for its board.

A Future Fund spokesman said it “invests to generate returns for the Commonwealth in line with our investment mandate, our legislation and our environmental, social and governance policy”.

“Like other large investors, such as superannuation funds, we have a broadly diversified portfolio of investments in companies which operate here in Australia and globally,” the spokesman said.

Mayo MP Rebekha Sharkie said Future Fund’s investments were “appalling”.

Lottery Corporation boss Sue van der Merwe told a parliamentary inquiry into gambling this month that evidence showed lotteries had “very low levels of gambling harm … mainly because they are non-continuous and low spend”, with players spending an average of $11.75 per week on tickets.

A Tabcorp spokesman said: “We continually monitor the behaviour and betting patterns of our customers so we can intercept and help potential problem gamblers at the earliest opportunity”.

Aristocrat Leisure and Star Entertainment Group were contacted for comment.

According to the Department of Social Services, Australians lost $25bn to gambling in 2018-19 – the most recent data available.

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