Australian Governments Maintain Financial Interest in Gambling Revenue

Australian state governments have generated billions in revenue from gambling, leading to a financial reliance that complicates federal reform efforts. This dependency arises in part from a vertical fiscal imbalance between federal and state funding structures.

What Happened

Momentum for changes to Australia’s gambling laws has increased since the 2023 release of the Murphy report, which made 31 recommendations, including limitations on gambling advertising and the appointment of a national online gambling regulator, according to The Conversation Africa. Despite public support for tougher rules, including gambling advertising bans, the federal government has shown reluctance to act. The government introduced new gambling legislation to parliament, but the bill has been criticized for not adequately addressing the problem, reportedly.

The proposed legislation, if passed, would implement restrictions on the timing and frequency of gambling advertisements and prohibit the use of celebrities in such ads, among other changes, according to The Conversation Africa. This federal reluctance to enact stronger regulations is attributed to a clear conflict of interest, where governments rely on gambling revenue while also being responsible for minimizing gambling harm, stated the report.

Key Details

• The Murphy report, released in 2023, recommended 31 reforms, including advertising limitations and a national online gambling regulator, as reported by The Conversation Africa.
• NSW’s gambling tax revenue in 2024–25 was $3.6 billion, comprising approximately 7% of the state’s $48 billion total tax revenue, according to The Conversation Africa.
• Gambling revenue is projected to increase to $4.7 billion over the next four years in NSW, The Conversation Africa reported.
• New South Wales contains nearly 90,000 poker machines, representing approximately half of the national total, according to The Conversation Africa.
• Other states, including Queensland and Victoria, also rely on gambling taxes, with Queensland collecting $1.9 billion in 2022–23 and Victoria collecting over $2.4 billion in 2024–25, as stated by The Conversation Africa.
• Tasmania, a smaller state, generated over $120 million for state coffers from gambling in 2023–24, according to The Conversation Africa.
• The reliance on gambling revenue by states is linked to a vertical fiscal imbalance, where the federal government controls more revenue collection, but states are responsible for delivering public services, as explained by The Conversation Africa.
• Gambling revenue is not factored into the Commonwealth Grants Commission’s decisions regarding funding distribution to jurisdictions, allowing states to retain all funds raised from gambling, the report stated.

Why It Matters

The Australian federal government’s reluctance to impose stricter gambling regulations, such as advertising controls or establishing a national regulator, is likely influenced by the potential impact on the federal budget, according to The Conversation Africa. Weaning states off gambling revenue would necessitate substantial alterations to federal-state fiscal relationships. The current funding model, described as having a vertical fiscal imbalance, contributes to states’ dependence on gambling taxes to fund essential public services like education, health, transport, and social services, the report stated. This means that structural reform often prioritizes politically and economically acceptable measures over addressing the underlying issues in federal funding, as noted by The Conversation Africa.

Originally reported by The Conversation Africa·Published 27 Jul 2026, 05:40