Gambling Losses in Australia Soar as Cost-of-Living Crisis Worsens
A new report by Equity Economics, supported by the Alliance for Gambling Reform and Wesley Mission, reveals that gambling losses in Australia have surged to record levels despite the ongoing cost-of-living crisis. The study, which examines gambling expenditure between 2019 and 2023, shows that Australians lost a staggering $31.5 billion on gambling in a single year—an amount exceeding government spending on aged care.
Gambling Expenditure Outpaces Essential Costs
Despite rising inflation and declining real wages, gambling losses have continued to increase, contradicting expectations that discretionary spending would shrink during economic hardship. The average Australian adult lost $1,527 to gambling in 2022-23, marking a 17% increase from pre-pandemic levels. Among those who gamble, the figure climbs to $2,492 per year, with frequent gamblers losing as much as $35,000 annually.
This growing financial burden places gambling among the most significant household expenditures. Australians now spend more on gambling than on electricity, gas, and other utilities, and gambling losses are approaching household spending on education.
A Growing Concern for Low-Income Households
The study highlights that gambling losses disproportionately impact lower-income households, where gambling accounts for a far greater share of disposable income. Households in the lowest income bracket spend over 10% of their earnings on gambling, compared to just 1.3% in the highest income group. Among high-risk gamblers in low-income households, gambling expenditure reaches a staggering 27% of total income, surpassing essential costs like groceries and utilities.
The financial strain extends beyond immediate money loss. Households with problem gamblers experience higher rates of financial distress, including difficulty paying rent or mortgage, increased reliance on financial assistance, and escalating debt.
The Hidden Social Costs of Gambling Harm
Gambling harm is not limited to individual losses. According to the report, each problem gambler negatively affects at least six people in their household or social circle, contributing to mental health issues, family breakdowns, intimate partner violence, and child neglect.
With gambling addiction now recognized in the DSM-5 (Diagnostic and Statistical Manual of Mental Disorders), experts argue that it should be treated as a public health issue similar to smoking and substance addiction. However, unlike alcohol and tobacco, gambling remains largely unregulated, with minimal restrictions on advertising and industry influence.
Policy Recommendations for Urgent Reform
The Alliance for Gambling Reform and Wesley Mission are urging the government to act on gambling harm, proposing the following measures:
- A nationwide ban on gambling advertising to reduce exposure, particularly among young people.
- Eliminating gambling inducements, such as promotions and bonuses that encourage excessive betting.
- A levy on gambling profits to fund harm reduction programs.
- Mandatory cashless gambling systems with pre-set spending and time limits.
- A national gambling ombudsman to oversee the industry and enforce consumer protection laws.