Published on: December 27, 2024, 12:25h.
Last updated on: December 27, 2024, 12:34h.
The University of Sydney holds investments in two prominent global gaming companies—Entain Group and Aristocrat Leisure Limited. This has sparked concerns regarding conflicts of interest, as both gaming manufacturers have supported gambling research conducted by the public university.
According to information obtained through a freedom of information request by the University of Sydney’s Student Council, the institution’s investment portfolio reveals significant stock holdings in Entain—a global sports betting and gaming firm based in the Isle of Man that owns Australian gaming brands such as Ladbrokes and Neds, and has a 50% stake in BetMGM. The disclosure also reveals ownership positions in Aristocrat, a Sydney-based company that provides slot machines, iGaming services, and sports betting.
Angus Fisher, the president of the Student Council, voiced concerns about the issue, stating: “This issue is particularly pressing as gambling-related harm disproportionally affects vulnerable communities, and the [gaming] industry’s role in funding research can lead to perceived or actual conflicts of interest. 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.”
Documents also indicate that the University of Sydney previously held stocks in Crown Resorts and Star Entertainment, the two companies holding casino licenses in Australia.
Australia has one of the world’s highest problem gambling rates, with the Australian Institute of Health and Welfare estimating that the average adult in the country loses over AU$1K annually on gambling.
Endowment Investments
Many public colleges and universities globally have endowments invested in a variety of assets, including financial securities. College endowments serve as a self-sustaining funding source.
Sydney’s endowment was reported to be over AU$4.3 billion (US$2.7 billion) in 2023, a figure lower than many universities in the United States. Harvard, for example, boasts an endowment of nearly $50 billion, with over 30 US universities having larger endowments than Sydney.
A spokesperson from the University of Sydney informed The Guardian that the school’s endowment and investments do not influence the institution’s research endeavors.
The spokesperson stated: “We have strict guidelines regarding our investments and have revised our strategies in recent years to enhance environmentally, socially, and financially responsible investment practices. Ensuring our research is rigorous and ethical is crucial for all universities, and our research integrity is vital for our success.”
The school concluded its statement by saying: “We have implemented policies to prevent and appropriately manage any actual, apparent, or perceived conflicts of interest involving university staff and affiliates.”
In 2023, the University of Sydney launched the Center of Excellence in Gambling Research through a grant from the International Center for Responsible Gaming in Las Vegas and Entain. Aristocrat has been a long-time supporter of the University of Sydney’s Gambling Treatment and Research Clinic.
Constant Criticism
Experts in responsible gaming have criticized research on gambling harms that is predominantly funded by the gaming industry itself. Critics argue that there is a significant conflict of interest for governments that benefit from gaming revenue through taxes and universities that receive substantial donations while conducting independent research on gambling harms.
In 2022, the UK’s National Health Service announced it would no longer accept donations from gaming-related entities to enhance public trust in its GambleAware research and initiatives.
The issue persists elsewhere, as the World Health Organization recently emphasized the universal need to address “gambling industry corporate political activity” and its impact on research.