University of Sydney’s Gaming Investments Raise Conflict of Interest Concerns

Posted on: December 27, 2024, 12:25h. 

Last updated on: December 27, 2024, 12:34h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

The University of Sydney has investments in two leading global gaming companies — Entain Group and Aristocrat Leisure Limited. That’s raising concerns about conflicts of interest, as both gaming manufacturers have funded gambling research conducted by the public university.

Sydney University Entain Aristocrat
The University of Sydney, Australia’s oldest university, has an endowment invested in gaming firms Entain and Aristocrat. That’s raising conflict of interest concerns because those companies held fund gambling research at the school. (Image: University of Sydney)

Obtained through a freedom of information request demanded by the University of Sydney’s Student Council, the school’s investment portfolio reveals significant stock holdings in Entain, an international sports betting and gaming firm based in the Isle of Man that is the parent company of Aussie gaming brands Ladbrokes and Neds, and which controls a 50% stake in BetMGM. The disclosure also exposed that the New South Wales school has ownership positions in Aristocrat, a Sydney-based global supplier of slot machines, iGaming services, and sports betting.

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,” said Angus Fisher, the Student Council’s president. “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.”

The documents also show that the University of Sydney previously held stock in Crown Resorts and Star Entertainment, the two firms that hold casino licenses in Australia.

Australia has one of the world’s highest problem gambling rates. The Australian Institute of Health and Welfare estimates the average adult in the country loses more than AU$1K annually gambling.

Endowment Investments 

Many public colleges and universities around the world have endowments that are invested in a mix of assets that often include financial securities. College endowments are designed to act as a self-sustaining source of funding.

Sydney’s endowment was reported at more than AU$4.3 billion (US$2.7 billion) in 2023. That pales compared to many universities in the United States, with Harvard topping the list at nearly $50 billion. More than 30 universities in the US have richer endowments than Sydney’s.

A University of Sydney spokesperson told The Guardian that the school’s endowment and investments have no bearing on the college’s research undertakings.

We have strict rules around our investments and in recent years have reviewed our strategies to improve environmentally, socially, and financially responsible investment practices. It is in all universities’ interests to ensure our research is robust and ethical — our research integrity is essential to our success,” the spokesperson said.

“We have policies in place to ensure the avoidance and appropriate management of actual, apparent, or perceived conflicts of interest by university staff and affiliates,” the school statement concluded.

In 2023, the University of Sydney established the Center of Excellence in Gambling Research through a grant from the International Center for Responsible Gaming in Las Vegas and Entain. Aristocrat has long been a contributor to the University of Sydney’s Gambling Treatment and Research Clinic.

Perpetual Criticism 

Responsible gaming experts have long criticized gambling harms research that’s primarily funded by the gaming industry itself. Critics say there’s a great conflict of interest for both governments that benefit from gaming in the form of tax revenue and universities that receive substantial donations in conducting independent research about gambling harms.

In 2022, the UK’s National Health Service said it would stop accepting donations from gaming-related entities to better ensure the public’s trust in its GambleAware research and initiatives.

The problem remains elsewhere. Earlier this month, the World Health Organization said there is a universal need to address “gambling industry corporate political activity” and its “influence on research.”