Political contributions made by horse racing betting companies have surged by a staggering 632%
Horse Betting Donations Skyrocket to Political Parties
Latest data reveals a jaw-dropping surge in donations from major betting companies to key political parties in Australia. From a mere $66,650 in the 2013-2014 financial year, donations skyrocketed to an astounding $488,000 in 2022-2023, representing a monumental increase of 632%.
This significant rise in donations comes as Canberra engages in heated debates about a potential ban on gambling advertising.
Top Donors in a Decade
In the last ten years, a total of eight major betting companies contributed a combined $2.7 million to major parties.
Labor was the largest recipient with $1.49 million, followed by the Liberals with a $952,500 share, and the Nationals with $263,300.
Tabcorp, often touted as creating the most captivating betting and entertainment experiences globally, emerged as the leading donor, contributing a staggering $1.02 million.
Next, Sportsbet—an online gambling giant based in Darwin, Northern Territory and owned by Flutter Entertainment—followed closely behind with donations totaling $823,050 over the past decade, with the majority coming in since the 2020-2021 financial year.
In October, Sportsbet announced it would cease offering high-risk betting options, such as wagers on music events and reality shows, due to increased regulatory pressure and concerns about high-risk gamblers.
Responsible Wagering Australia (RWA) has also contributed significantly to party funds, providing $651,320 in donations, mostly split evenly between Labor and the Coalition.
RWA engages with policymakers primarily through memberships rather than direct donations to discuss policy matters relevant to the industry.
Senator Faruqi Slams "Blood Money" Donations
Greens Senator Mehreen Faruqi has been vocal in condemning major parties for accepting "blood money" donations from gambling companies linked to "gambling-fuelled animal cruelty," especially in the lead-up to the Melbourne Cup.
The Melbourne Cup, set to hold its 164th race on Tuesday, has seen dwindling public interest, with a recent Essential poll showing only 11% reporting a high interest in the event, marking a drop of 5% from 2022.
"Labor and the Liberals work for their donors and lobby groups," Faruqi charged. "They don't care about the exploitation and pain that gambling wreaks on countless Australians. They don't care that a horse gets killed every two days on racetracks in this archaic, disturbing festival of suffering. All they care about is lining their pockets with donations from the gambling industry."
Sportsbet: Our Donations Have Decreased
Australian political parties can also generate funds through paid business forums and observer programs with private companies.
A spokesperson for Sportsbet revealed that the company participates in government consultations through business forums and that all donations, memberships, and their disclosures comply with legal requirements.
The spokesperson also stated that their overall donations had decreased over the past three years, while emphasizing their partnerships with racing bodies and their commitment to ensuring racing can be enjoyed responsibly in the future.
"Racing is the heartbeat of communities across Australia, and Sportsbet plays a vital role in supporting these communities," the spokesperson explained.
Government Proposes Donation and Spending Caps
The Albanese government has proposed electoral reforms, which would include donation and spending caps as well as lower disclosure thresholds. However, bipartisan support for the reforms remains elusive.
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 indicated that Labor remains dedicated to enhancing transparency and reforming donation laws.
- The gambling industry's influence in politics has been demonstrated with the drastic increase in donations from online gambling companies to Australian political parties.
- In the last ten years, eight major betting companies have collectively donated over $2.7 million to key political parties, with Tabcorp being the leading donor.
- Sportsbet, an online gambling giant, has donated $823,050 to political parties over the past decade, and though they have ceased offering high-risk betting options, they still have ties to the racing industry.
- Mehreen Faruqi, a Greens Senator, has criticized major parties for accepting donations from gambling companies, calling the funds "blood money" linked to animal cruelty, particularly in horse-racing events like the Melbourne Cup.
