Congrats on the election win, Albo. Now do something about gambling

While there are no doubt many factors to last weekend’s election outcome, it’s clear that chief among people’s priorities when heading to the ballot box was the cost of living. From reducing utility bills to a proposed fuel excise and tax cuts, polling consistently showed throughout the campaign that voters were hungry for policies that would help ease hip-pocket pain.

One thing we don’t cover enough when we discuss the sustained economic pain and how to ease financial household pressures, though, is gambling.

Australian teenagers gamble $231 million a year.Credit: iStock

When you consider this was one of the biggest political topics of 2024, and the pressure Prime Minister Anthony Albanese was under to adopt recommendations from the Murphy inquiry (written by his own Labor colleague, the late Peta Murphy), the absence of gambling reform from this election debate was astounding.

There are a few reasons gambling is so closely linked to cost of living and why, if you’re trying to help people end up better off, addressing this matter is a good place to start.

Australians now spend more than any other country in the world on gambling. Between 2021 and 2022, Australians lost more than $25 billion to the practice, a figure that worsened the following year, climbing to $32 billion between 2022 and 2023. For context, that’s more than the federal government spent on the entire aged care sector during the same period ($28.3 billion).

Then there’s the report from Equity Economics, which confirmed the increase in annual spending and found that “gambling losses also disproportionately burden those households least able to absorb them”.

It’s not only disappointing that there wasn’t more of a focus on tackling this issue during the election campaign, it’s reckless.

The report explained that “lower-income households are particularly vulnerable, as the rising cost of essential goods and services (such as housing, food and utilities) further squeezes already tight budgets, leaving even less room for unexpected expenses, emergencies or discretionary spending”.

People spending money this way when things are already tight may sound counterintuitive to common sense, but that’s one of the biggest problems with gambling. It defies logic, and despite the odds being disproportionately stacked for a loss, we can’t seem to get enough of it.

Of course, not every bet placed or Lotto ticket purchased is symptomatic of a problem or addiction. But the Australian Gambling Research Centre found two out of five Australians now gamble at least once a week, and that men not only consistently gamble more than women, but that they are more likely to spend more money, making them more at risk of harm.

As for that $32 billion I mentioned earlier, in real terms, that works out to be an annual loss of $1500 per adult in Australia. If you’re thinking, “Well, hold on, Victoria. I didn’t lose any money on gambling last year and neither did my partner’, that just means there’s someone out there who lost $4500.

Pokies are easier to find than ATMs, post boxes and public toilets.Credit: Jason South

Considering all of this, it’s not only disappointing that there wasn’t more of a focus on tackling this matter during the election campaign, it’s reckless.

If Labor is serious about improving economic prosperity for all Australians, reducing gambling losses has to be a part of any economic plan it puts forward.

To be clear, I’m not suggesting we ban gambling. What I am saying, though, is that we should not be OK with losing $32 billion a year to the practice, and at the very least our ambition should be losing the top spot of the world’s highest rollers. That we lost more to gambling than Las Vegas between 2022 and 2023 should stop every politician and policymaker in their tracks.

According to the Grattan Institute, despite making up less than 1 per cent of the global population, Australia is home to 18 per cent of the world’s pokies, which account for 50 per cent of our annual gambling losses.

That they are now easier to find than ATMs, post boxes or public toilets really says everything. And if you want to ease the cost-of-living pressure for those who most need it, better regulating these machines would be an obvious place to start.

Among the 31 recommendations included in the Murphy inquiry’s final report was the recommendation to ban gambling advertising across TV, newspapers, online and radio, which was heavily debated last year.

Research shows the prevalence of advertising is drawing in younger audiences, with teenagers now particularly susceptible. Despite it being illegal to gamble before you turn 18, it’s estimated that almost 30 per cent of Australian children aged 12 to 17 are finding workarounds to get in on the action.

This number soars to 46 per cent among those aged 18-19, with our teenagers gambling $231 million a year. While I’m sure betting companies think the prospect of lifelong customers is great, it’s terrible news for everybody else.

One of the truly pernicious aspects to gambling is the mushroom cloud effect it has not just on gamblers themselves, but also on the people around them. With this habit comes an increased risk of poor mental health, a breakdown in trust, and in the case of family members or romantic relationships, increased financial strain and often a sharing of the accrued debt.

When polled on the issue, 69 per cent of people told the Australian Institute of Family Studies that advertising had become too common, encouraging gambling and targeting people at risk of gambling problems. Most significantly, 64 per cent of people said the government should play the biggest role in deciding how wagering is advertised.

Three months ago, Albanese said his government “will do more” to protect Australians and rein-in gambling. Having just received a historic mandate from voters to improve the cost-of-living crisis, we’ll now have to wait and see if he’s true to his word.

Victoria Devine is an award-winning retired financial adviser, bestselling author and host of Australia’s No.1 finance podcast, She’s on the Money. She is also founder and director of Zella Money.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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