University of Sydney Faces Scrutiny Over Gambling Industry Investments

The University of Sydney has come under scrutiny for its financial ties to the gambling industry, including investments in major companies such as Aristocrat and Entain. These companies have also funded academic research and gambling treatment programs at the university, raising concerns about potential conflicts of interest and ethical standards.

Documents obtained by The Guardian through freedom of information (FoI) laws revealed that between 2021 and early 2024, the university held shares in Aristocrat, the world’s largest poker machine manufacturer, and Entain, a global betting giant operating brands like Ladbrokes and Neds. Additional holdings included International Game Technology, Crown Resorts, and the Star Entertainment Group, though the exact timeline and value of these investments remain unclear.

Entain has faced legal action for alleged anti-money laundering violations, while Aristocrat has been criticized for exporting poker machines globally. Both companies have provided financial support for gambling research initiatives at the university, with Aristocrat funding its treatment and research clinic and Entain acting as a foundational sponsor for the university’s gambling research center.

Ethical Concerns and Student Opposition

The university’s student representative council has voiced strong opposition to these investments. Angus Fisher, the council’s president, highlighted the societal damage caused by gambling, particularly to vulnerable communities, and questioned the university’s commitment to ethical practices.

“It is concerning that a university committed to advancing knowledge and social equity may be profiting from an industry that thrives on exploitation and addiction,” Fisher stated. He emphasized that gambling industry funding for research could lead to perceived or actual conflicts of interest.

This sentiment echoes broader concerns raised by the 2023 online gambling inquiry report, which urged the federal government to shield public policy and research from gambling industry influence.

University Defends Its Practices

In response to the criticism, a university spokesperson asserted that the institution is a not-for-profit entity, reinvesting revenue into research and teaching advancements. The spokesperson also noted the university’s commitment to socially responsible investment practices, saying, “We have strict rules around our investments and in recent years have reviewed our strategies to improve environmentally, socially, and financially responsible investment practices.”

The university also emphasized its dedication to research integrity, stating, “It is in all universities’ interests to ensure our research is robust and ethical – our research integrity is essential to our success.” Policies are reportedly in place to manage any potential conflicts of interest.

Broader Criticism of Gambling Industry Ties

Simon Chapman, a retired academic who previously led efforts to sever university ties with the tobacco industry, argued that gambling investments warrant similar scrutiny. “Universities cannot continue their research programs without support, but there is obviously controversy when the product is deadly or causes an immense amount of harm,” he stated.

Public health expert Prof. Samantha Thomas of Deakin University called for gambling to be treated with the same seriousness as the tobacco industry, given its social harms. “It is disappointing to see these relationships with the gambling industry,” Thomas said, pointing to the university’s earlier leadership in tackling tobacco industry influence.

Tim Costello, a leading advocate for gambling reform, linked Australia’s significant gambling-related harm to widespread industry ties, including those of universities. He stated, “The reason Australia cannot escape the world’s greatest per capita losses and greatest gambling harm is that even our independent universities, like Sydney, invest in Aristocrat and Entain.”

Aristocrat has defended its funding of gambling research, asserting that it aims to contribute to a better understanding of gambling harm and its mitigation. Entain has similarly justified its involvement, with a spokesperson emphasizing the need for robust, evidence-based research over what they termed “speculation and emotional rhetoric.”