Gambling giants made $5.4 billion in one year but paid just $107 million in tax

Online gambling companies are hitting the jackpot in Australia, with research showing five of the biggest operators raked in $5.4 billion in a single year while paying just $107 million in company income tax.

The Australia Institute analysis shows three major players — Tabcorp, bet365 (Hillside) and PointsBet — won $1.3 billion from Australian gamblers in 2023-24 yet paid zero company tax.

“The Murphy Review recommended a federal levy on online betting and now we know why,” said Rod Campbell, Research Director at The Australia Institute.

“Online betting companies are very good winning money and very good at convincing the ATO that they don’t make any profit and shouldn’t pay any tax.”

Chaired by the late Labor MP Peta Murphy, the inquiry recommended 31 unanimous recommendations for a public health approach to gambling harm, including a total ban on gambling advertising, a national regulator and an industry levy.

“A simple levy on wagering revenue specifically to address gambling harm is badly needed if Australia is to do anything about our world-leading gambling losses,” said Mr Campbell.

Research by the Australia Institute shows Australians lost over $104 billion to gambling between July 2023 and July 2026, which equates to an average of $666 million per week.

Its latest report found that despite $5.4 billion in ‘winnings’, the five companies recorded a taxable income of just $382 million.

Their collective company tax bill of $107 million means they paid only 2 per cent of their combined total income.

“We have long known the harm these companies cause in Australian communities – causing bankruptcies, health and mental health issues, exacerbating domestic violence and also leading some people to suicide – but now to hear that they give so little back through their tax minimisation schemes is appalling,” said Martin Thomas, CEO of the Alliance for Gambling Reform.

“The Federal Government must do more to crackdown on these companies, to make sure they pay their fair share, rather than continuing to let our nation be a wild west for foreign-owned gambling companies.”

Prime Minister Anthony Albanese has promised his government would “take the strongest possible action that any government has taken in history”, but the proposed legislation has faced scathing criticism from the crossbench, gambling-harm advocates and some Coalition MPs.

Church-based community service providers have urged the major parties to strengthen the reforms, warning that overwhelming grassroots support for action is being drowned out by vested interests.

“Australians are sick of being bombarded with gambling advertising and inducements, and they want governments to protect people from falling prey to them,” said Anglicare Australia Deputy Director Maiy Azize.

“The gambling industry, enabled by woefully inadequate regulatory oversight, has been wreaking havoc across Australian communities as it aggressively markets its highly addictive and profitable products.”

Analysis from the Australia Institute shows the five big companies spent at least $600 million on advertising and marketing in a single year – six times more than they paid in company income tax.

Anglicare Australia, UnitingCare Australia, The Salvation Army, St Vincent de Paul Society and Wesley Mission have also warned that the current draft legislation “fails to enact even one of the 31 evidence-based and unanimous recommendations” of the Murphy inquiry.

“That’s not good enough. We need real and effective reform now,” said Wesley Mission CEO Rev Stu Cameron.

The church providers say the Opposition has the chance to “take the lead” and demand stronger protections.

“We call on Angus Taylor and Sarah Henderson to demand sensible amendments to strengthen the proposed legislation and deliver what citizens have made clear they want and want now,” said Toby oConnor, CEO of St Vincent de Paul National Council.

The proposed reforms would restrict TV gambling advertising to three ads per hour between 6am and 8:30pm, with a complete ban during live sport broadcasts within that timeframe.

“For children and young people there is no safe level of exposure to gambling advertising,” said Jennifer Kirkaldy, National General Manager Policy and Advocacy at The Salvation Army Australia.

“Right now, parliament has a milestone opportunity to improve this legislation to ensure it will support people who want to manage their own gambling and safeguard our community against gambling harm.”