Influence of alcohol and gambling donations on Australian politics under scrutiny

February 5, 2025

Influence of alcohol and gambling donations on Australian politics under scrutiny

A recent report by the Australian Electoral Commission (AEC) has sparked controversy, revealing that alcohol and gambling companies donated AUD 2.5 million to political parties in the fiscal year 2023-2024. Advocacy groups such as the Foundation for Alcohol Research and Education (FARE) and the Alliance for Gambling Reform (AGR) have criticised these donations, arguing that they compromise policies designed to protect Australians.

Breakdown of the Australian politics donations

The AEC Transparency Register disclosed that the alcohol and gambling industries collectively contributed nearly AUD 2.5 million in political donations. This included AUD 998,000 from the alcohol industry, AUD 661,000 from the gambling industry, and AUD 815,000 in mixed industry contributions. Of these donations, 61 percent went to the Australian Labor Party (ALP) and 38 percent to the Liberal National Party (LNP).

Companies solely profiting from alcohol donated nearly AUD 1 million to political parties. Critics argue that these donations have historically stalled or weakened policies aimed at reducing alcohol-related harm. Gambling companies contributed AUD 661,000, raising concerns about the influence of lobbyists in blocking reforms such as restrictions on gambling advertisements and betting regulations.

Both alcohol and gambling businesses channelled AUD 815,000 into the political process. These two industries wield significant influence, which they use to shape policies in their favour.

Reactions from advocacy groups

FARE and AGR strongly condemned these donations, emphasising their detrimental impact on public health and safety policies.

FARE CEO Caterina Giorgi stated that these donations are not acts of goodwill but strategic moves to influence policy outcomes. She pointed out that alcohol companies have repeatedly used financial leverage to block or delay regulations that could improve public health.

Giorgi said, “When companies provide donations to political parties, they do so to try and influence decision-making. We must see common-sense reforms that put the community first and strengthen our democracy.”

AGR CEO Martin Thomas echoed these concerns, stating that gambling companies use donations to halt reforms, particularly in the push to ban gambling advertisements. He highlighted that donations peak when major regulatory changes are on the table.

Thomas added, “In the last few months alone, we have seen the influence and overreach from gambling lobby groups, which have stalled progress on legislating a gambling ad ban that our communities are loudly calling for. The evidence shows these donations spike at times when reforms are being considered. It is a blatant attempt to undermine reform, and in doing so, it attacks our democratic process. With political willpower, gambling and alcohol companies can be excluded from donating – we saw it with tobacco, now let’s see it for these other industries.”

Both FARE and AGR advocate for a total ban on political donations by alcohol and gambling companies, following the model used in the existing tobacco sector prohibition. They argue that this is necessary to protect democratic integrity and prevent corporate interference in policymaking.

Senator David Pocock’s calls for an investigation

Senator David Pocock has responded to the report by calling for an investigation into the influence of the gambling industry on politics. This was prompted by undisclosed meetings between Prime Minister Anthony Albanese and executives from major sports leagues, including the National Rugby League (NRL) and the Australian Football League (AFL). Pocock demands explanations for these meetings and stronger measures to prevent covert lobbying.

There has been a growing debate about political donations lately as part of a larger discussion on regulations. In New South Wales, the current government recently banned advertisements for gambling on public transportation.