Horse Racing Betting Companies’ Donations to Political Parties Up 632%

According to fresh data from the Australian Electoral Commission, examined by the parliamentary library, donations from major horse betting companies to major political parties have gone up a whopping 632% from $66,650 in 2013-2014 to $488,000 in 2022-2023. 

The revelation came amid Canberra’s ongoing debate on a potential ban on gambling advertising. 

Eight Big Donors in the Last Decade

In total, eight major betting companies have donated $2.7 million combined to major parties over the last decade. 

Labor received $1.49 million, followed by the Liberals with a $952,500 share, and the Nationals with $263,300.

Tabcorp, the company that is “raising the game by creating the most engaging betting and entertainment experiences business in the world” has emerged as the top donor. 

The gambling giant with over 5,000 employees that announced the departure of chairman Bruce Akhurst at the end of September amid a series of financial problems has contributed $1.02 million. 

Next in line is Darwin, Northern Territory-founded Sportsbet. The Flutter Entertainment-owned online gambling company that primarily targets the Australian market has donated no less than $823,050 in the last 10 years, with over $600,000 given since 2020-2021. 

In mid-October, Sportsbet announced it would stop offering novelty betting options such as wagering on the Grammys or reality shows like Australian Survivor, as a result of the growing regulatory scrutiny and the rising concerns regarding high-risk bettors.

Responsible Wagering Australia (RWA), which is the independent peak body for Australian-licensed wagering service providers established after the dissolution of the Australian Wagering Council in 2016, has brought political parties $651,320 in contributions. 

Its funds were relatively evenly split between Labor and the Coalition.

The body stated it primarily engages with policymakers through memberships rather than direct donations, as a way to discuss policy matters relevant to the industry. 

Senator Faruqi Criticizes the Acceptance of “Blood Money” Donos

Greens Senator Mehreen Faruqi criticized the major parties for accepting what she called “blood money” donations from gambling companies tied to “gambling-fuelled animal cruelty,” particularly in the lead-up to the Melbourne Cup which is due to hold its 164th race on Tuesday. 

Despite the federal politicians expected to attend the big sporting event, the Cup has seen waning public interest, with a 2023 Essential poll showing just 11% reporting a “high interest” in the event, signaling a drop of 5% from 2022.

“Labor and the Liberals work for their donors and lobby groups,” Faruqi said. “They don’t care about the pain that gambling causes to so many in this country. They don’t care that a horse gets killed every two days on racetracks in this anachronistic, grotesque festival of cruelty. All they care about is lining their pockets with donations from the gambling industry.”

Sportsbet: “Our Overall Donations Have Decreased”

Political parties in Australia can also generate funds from private companies by providing access through paid business forums and observer programs.

A spokesperson for Sportsbet noted that the company participates in government consultations through business forums and that its memberships and donations are disclosed according to legal requirements. 

The spokesperson went on to say that their “overall donations have decreased over each of the past three years” while explaining their partnerships with racing bodies and their regulatory engagement guaranteed racing could be “enjoyed responsibly for generations to come.”

“Racing is the lifeblood of communities right around Australia and Sportsbet makes a significant economic contribution to these communities,” the spokesperson added.

Government Wants Donation Caps and Lower Disclosure Thresholds

Political donations disclosed to the federal electoral body above the threshold are publicly released the following financial year. 

The Albanese government has proposed electoral reforms that would introduce donation and spending caps as well as lower the disclosure threshold, though bipartisan support has yet to be achieved. 

In the meanwhile, Australia’s annual gambling losses have risen sharply from $25.6 billion before the COVID-19 pandemic to $32 billion in 2022-2023, according to data from the Queensland government. 

A government spokesperson said Labor is committed to improving transparency and reforming donation laws.