Australia has an uneasy relationship with gambling. The industry generates billions in tax revenue and supports thousands of jobs, yet Australians lose more money per person than any other nation. In 2025, total gambling losses reached an estimated $32 billion, up from $25.6 billion before the pandemic. The economic impact of gambling is a story of two sides – substantial financial contributions to government coffers and equally substantial costs to individuals, families, and communities.
This article examines the full economic picture of gambling in Australia, including total losses, tax revenue, employment, and the often-overlooked social costs that accompany the industry’s growth.
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Total Gambling Losses – $32 Billion and Rising
Australians lose an estimated $32 billion annually to legal forms of gambling, the highest per capita losses of any country in the world. This figure has grown significantly from $25.6 billion before the COVID-19 pandemic. The increase has been driven by the rapid expansion of online gambling platforms and the proliferation of wagering opportunities backed by intensive advertising.
The Queensland Government Statistician’s Office reported that national gambling losses rose to $32 billion, reflecting a post-pandemic surge in betting activity. IBISWorld forecasts per capita gambling expenditure to rise by 1.3% in 2025-26 to $1,572.23, driven primarily by increasing real household discretionary income.
Pokies remain the largest contributor to gambling losses. In New South Wales alone, residents lost $2.3 billion on poker machines in the second quarter of 2025, an increase of 8.7% compared to the same period the previous year. South Australia also saw gaming machine revenue exceed $1 billion for the first time in the 2024-25 financial year, up nearly $53 million from the previous 12 months.
The online gambling market is growing even faster. The Australia online gambling market was valued at approximately $5.5 billion in 2025 and is projected to reach $9 billion by 2034, representing a compound annual growth rate of 5.7%. Sports betting alone was valued at $8.32 billion in 2025 and is expected to grow at a CAGR of 22.1% through 2035.
Gambling Losses by Sector (2025 Estimates)
| Sector | Annual Losses (AUD) | Growth Trend |
|---|---|---|
| Total Gambling Market | $32 billion | Growing |
| Online Gambling | $5.5 billion | +5.7% CAGR |
| Sports Betting | $8.32 billion | +22.1% CAGR |
| Pokies (NSW quarterly) | $2.3 billion | +8.7% |
Tax Revenue – A Critical Source for State Budgets
Gambling taxes are a significant revenue source for Australian state governments. In Queensland, 8.5% of total taxation revenue is projected to come from gambling in the 2025-26 financial year, according to state budget papers. Total gambling tax revenue is projected to grow at an average of 4.5% annually through 2028-29.
New South Wales provides the starkest example of gambling’s fiscal importance. The 2025-26 NSW Budget banks on $2.61 billion from pokies taxes, with projections rising to nearly $3 billion by 2028-29. In the third quarter of 2025 alone, taxes paid to the NSW state government from gaming machines totalled more than $1.4 billion, a 10.2% rise year-on-year.
These figures reveal a dependency that complicates gambling reform efforts. State governments have become reliant on gambling tax revenue, creating a tension between public health concerns and fiscal realities. Clubs with poker machines have also seen their tax breaks surge beyond $1 billion annually as gambling losses rise, with no sign of these concessions being reduced.
For context, Australians lost $34.8 billion in 2024 – more than household spending on electricity, gas, or alcohol. This highlights both the scale of the industry and the magnitude of the tax base it provides to state treasuries.
Employment – Thousands of Jobs Across the Industry
The gambling industry directly employs thousands of Australians across casinos, gaming venues, wagering operators, and related services. Major casino operators such as Crown and The Star employ thousands of staff in roles ranging from dealers to hospitality workers. Tabcorp, Sportsbet, Bet365, and Ladbrokes collectively employ thousands more in customer service, technology, compliance, and marketing roles.
Beyond direct employment, the industry supports jobs in related sectors including equipment manufacturing (dominated by Aristocrat Leisure), hospitality, tourism, and professional services such as legal and accounting firms that specialise in gambling regulation. Regional areas with major casinos or racing facilities often rely on gambling-related employment as a significant source of local jobs.
However, employment figures must be weighed against the social costs of gambling. The industry’s job creation is real, but it is accompanied by significant harm to individuals and families that also has economic consequences, including lost productivity, healthcare costs, and increased demand for social services.
The Reserve Bank of Australia estimates that the betting sector contributes approximately $2 billion annually to the Australian economy. This contribution flows through wages, tax payments, and supply chain spending, but does not account for the displacement of spending from other sectors or the social costs of gambling harm.
State Gambling Tax Revenue (2025-26 Estimates)
| State | Gambling Tax Revenue | Share of Total Tax | Trend |
|---|---|---|---|
| New South Wales | $2.61 billion (pokies) | Significant | Growing to $3B by 2029 |
| Queensland | N/A | 8.5% | +4.5% CAGR |
| South Australia | $361 million (gaming machines) | Moderate | Growing |
Social Cost – The Hidden Bill of Gambling Harm
The social cost of gambling harm is estimated at $7 billion annually, including broken relationships, job losses, mental health impacts, and suicide. A Victorian government report found gamblers bear 51.7% of costs ($7.3 billion), while affected others (family members, partners, children) bear 26.6% ($3.8 billion). Nearly 20% of people whose partner gambled weekly reported intimate partner violence, versus 7% where partners did not gamble.
Government services also bear costs, with Tasmania alone incurring $88 million annually. As gambling losses rise from $25.6 billion pre-pandemic to $32 billion today, social costs increase in parallel. Federal reforms like BetStop and 2027 advertising bans face opposition from state governments reliant on gambling tax revenue.
The economic impact of gambling in Australia presents a paradox. The industry generates billions in tax revenue, supports thousands of jobs, and contributes to economic activity. Yet Australians lose $32 billion annually – more per person than any other nation – and the social cost of gambling harm is estimated at $7 billion each year.
State governments have become dependent on gambling taxes, with NSW banking on $2.61 billion from pokies alone in 2025-26. This fiscal reality complicates reform efforts, even as evidence of harm mounts. The fastest-growing segment, online gambling, is projected to reach $9 billion by 2034, suggesting that the industry’s economic footprint – and its associated costs – will continue to expand.
A complete economic assessment of gambling must account for both sides of the ledger. The tax revenue and jobs are real, but so are the broken homes, lost savings, and lives devastated by addiction. As Australia debates further gambling reform, understanding this full economic picture is essential.
Sources: Queensland Government Statistician’s Office (QGSO), IBISWorld, NSW Budget 2025-26, Equity Economics report, Deloitte Access Economics, Parliamentary Hansard (WA), Victorian government report on gambling harm
How Much Does Gambling Cost the Australian Economy?
Q1: How much money do Australians lose to gambling each year? ▼
Australians lose an estimated $32 billion annually to legal forms of gambling, the highest per capita losses of any country in the world. This is up from $25.6 billion before the COVID-19 pandemic.
Q2: How much tax revenue does gambling generate for state governments? ▼
Gambling taxes are a significant revenue source. NSW banks on $2.61 billion from pokies taxes in 2025-26, projected to reach $3 billion by 2029. Queensland expects 8.5% of total taxation revenue from gambling in 2025-26.
Q3: How many people does the gambling industry employ? ▼
The gambling industry directly and indirectly employs tens of thousands of Australians across casinos, wagering operators, gaming machine manufacturers, and related services. The RBA estimates the betting sector contributes approximately $2 billion annually to the economy.
Q4: What is the social cost of gambling in Australia? ▼
The social cost of gambling harm is conservatively estimated at $7 billion annually, including financial losses, broken relationships, mental health impacts, and suicide. Gamblers bear about 52% of these costs, while affected others bear about 27%.
Q5: Is the gambling industry growing in Australia? ▼
Yes. Online gambling is the fastest-growing segment, valued at $5.5 billion in 2025 and projected to reach $9 billion by 2034 (5.7% CAGR). Sports betting is growing even faster at 22.1% CAGR, from $8.32 billion in 2025 to an estimated $61.27 billion by 2035.
