Martin Thomas, CEO for the Alliance for Gambling Reform
10 Mar 2025
In the last decade, the nature of gambling in Australia has changed profoundly and its impact on family household budgets is now greater than at any other time.
New technology, a slew of rapacious, foreign-owned gambling companies and a near catastrophic failure of regulation has allowed gambling to pervade our lives like never before and its impact is being felt deeply at the household budget level.
Gambling used to be synonymous with a few hardcore poker machine players tucked away in a dark corner of the local pub or club. But there has been a massive spike in gambling across the entire community, thanks largely to the near unregulated boom in sports betting.
And for every person who gambles, research shows that six other people are affected.
In other words, Australia's world-record annual gambling losses of almost $32 billion every year are hitting Australian families hard.
New research by Equity Economics shows that spiralling gambling losses are now a bigger drain on the household budget than the cost of electricity and gas while gambling losses are growing at a rate faster than the cost of housing.
The research also revealed that Australia's staggering annual gambling losses eclipses that spent by the federal government on aged care and almost rivals the expenditure for the NDIS.
Gambling losses amount to $1527 for every adult in Australia with a devastating financial impact on families. It is a hole in the bucket that continually drains critical household savings.
We have seen governments respond swiftly in recent years to the cost-of-living crisis, but there has been a complete policy vacuum on mitigating the cost-of-living impacts of gambling.
Yet gambling reforms, such as banning gambling advertising, represent a non-inflationary, low-cost suite of initiatives that would bring profound relief to families who are struggling with rising prices of essentials.
It is baffling that with more than 70 per cent of the nation supporting a full ban on gambling ads that the government has sat on a report by a parliamentary committee, headed by their own Peta Murphy, for almost two years without taking any action - or even a formal response.
It only makes sense when you understand that the gambling lobby and its allies (which tragically now includes the AFL and the NRL) have run an aggressive, behind-closed-door campaign to scuttle any gambling reform.
Research shows that the gambling industry today is among the biggest political donors. It deploys more lobbyists than any other industry and entertains more of our political leaders - especially at times when regulatory reforms are being considered.
There is still time for both Labor and the Coalition to commit to a sensible response to the Murphy parliamentary inquiry report and its recommendations - to ban all gambling advertising, ban inducements and set up a national gambling regulator.
In fact, all 31 recommendations of the Murphy report would significantly reduce gambling harm in Australia and dramatically ease the financial burden Australian families are suffering during this cost-of-living crisis.
Today Australian households spend $3045 on gambling per year - more than they spend on essential utilities like electricity, gas, and other fuels ($2821).
And this expenditure or these gambling losses have increased by 18.2 per cent, more than expenditure growth on education (17.5 per cent), housing (14.2 per cent) and three times faster than growth in electricity, gas and other fuel expenditures.
In fact, there has been a 25 per cent spike in gambling losses on pre-pandemic losses.
And most troublingly, the type of gambling that is driving this growth is sports betting - and it is young people that are leading this charge.
Sports wagering has doubled in just five years, and it is estimated that a staggering one in five men aged between 18-25 have a gambling problem.
There is also anecdotal evidence that underage gambling is surging.
This means we are probably still yet to see the worst impact of gambling as a whole new generation falls prey to the gambling industry.
The gambling industry's business model is to get as many people gambling as possible and for them to lose as much money as possible - more than they can afford.
Cynically, it targets poorer communities.
It also spends millions every year to ensure their machines and products are addictive.
It means poker machines light up and make winning noises - even when you lose.
It means that when you stop betting online, gambling companies will do all they can to get you betting again - sending you free bets and invites to sporting events.
As one woman recently told a parliamentary group, her brother committed suicide because whenever he stopped gambling he was inundated with inducements.
His suicide note said he despaired at ever being able to give up gambling and didn't want his family to suffer the trauma of his gambling.
The family say he was harassed to death by the gambling companies.
We always knew gambling losses were a public health issue - fueling health and mental health issues and exacerbating domestic violence and even being a factor in as many as 20 per cent of the nation's suicides.
But now there is evidence that gambling losses are hitting the family purse hard.
It's now time for our political leaders to act and to protect Australians from all the invasive harms of gambling.