Liquor & Gaming NSW (L&GNSW) has stepped up its crackdown on venues breaching mandatory gaming machine shutdown rules, with an intelligence-led compliance operation resulting in fines, cautions and further regulatory action.
Under NSW gaming reforms in 2025, gaming machines must be switched off between 4am and 10am daily, providing a guaranteed break in play, as part of efforts to minimise gambling harm.
The new crackdown follows the NSW Government’s removal in April of outdated exemptions that had allowed more than 650 pubs and clubs to operate gaming machines during standard shutdown hours.
Since then, L&GNSW has reviewed 51 venues across Sydney, the Hunter and the North Coast, with another 70 venues under assessment as inspections continue in the coming months.
The operation has so far resulted in fines for the Crown Hotel in Camden and East Cessnock Bowling Club, an official caution for one venue and a referral for formal disciplinary action against another.
Regulators are using real-time data analysis, venue inspections and record examinations to identify potential breaches.
Aside from enforcement action, 32 venues have received education and compliance support for issues considered minor, isolated or linked to exceptional circumstances outside their control.
Before the reforms, 672 venues had reduced shutdown periods, generally three hours instead of six. Many of these arrangements had been in place for over two decades. A small number of venues have since been assessed and approved by the Independent Liquor & Gaming Authority to retain three-hour shutdown periods.
L&GNSW Executive Director Regulatory Operations Dimitri Argeres said venues should expect continued scrutiny of their compliance.
“The six-hour shutdown period is an important safeguard that supports harm minimisation by providing a guaranteed break in gaming machine operation each day.”
While most reviewed venues had met their obligations, Argeres said a small number of breaches had resulted in penalties, regulatory action and ongoing investigations.
“Our approach is intelligence-led and proportionate,” he explains. “Where issues are minor or isolated, we work with venues to improve compliance. However, significant or repeated breaches will attract stronger regulatory action.”
Mr Argeres urged operators to ensure their systems, processes and staff could prevent gaming machines operating during prohibited hours.
The latest action follows several significant shutdown breaches in NSW. In 2025, the Concourse Hotel at Wynyard was fined $110,000 for allowing patrons to play its 29 gaming machines outside authorised hours.
The former Richards on the Park Hotel at Canley Vale was fined $44,000 the same year after 68 breaches, while the Royal Inn Hotel in Newcastle was fined $7,540 in 2024 for 13 breaches.
The NSW Government announced a review of the mandatory shutdown period in August 2026, citing evidence that higher-risk gamblers are more likely to play during the early hours of the morning.
Any proposed changes will be informed by stakeholder consultation, evidence of gambling harm and the operational impacts on venues.
Further information on shutdown periods can be found on the NSW Government website.
