Problem gambling is linked to health inequalities. It can also reduce health-related quality of life. Not much is known about how different levels of problem gambling affect health-related quality of life. This study examined the impact of gambling on health state utility value and quality of life. Health state utility value is a score that ranges from 0 (‘death’) to 1 (‘best health status’). Participants were 15,144 Australian adults age 15+. Of the total sample, 3.4% were low-risk gamblers based on the Problem Gambling Severity Index. A further 2.1% were moderate-risk gamblers, and 0.9% were people with problem gambling. Greater problem gambling severity was associated with lower health state utility value. Women and people of older age had lower health state utility value. Gambling was associated with 443 quality-adjusted life year losses in 2015 in Australia.