The Minns Labor Government has announced its next and most comprehensive tranche of harm prevention measures, in the evidence-based NSW Gaming Reform package.
The government says it is delivering on a key election commitment, looking to invest $95.2 million over four years to fund these changes.
Key will be the Statewide Exclusion Register plus mandatory facial recognition technology, a third-party exclusion scheme across all gaming venues, increased forfeiture rate and the end of gaming VIP programs.
Beyond the poker machines, a state-based strategy will be established to reduce online gambling harm, and there will be a ban on gambling advertising on all NSW Government and council-owned assets and via unsolicited direct marketing to potential customers.
“These reforms put harm minimisation at the heart of our gaming system, making it easier for people to stop, giving families more options to intervene and putting stronger safeguards around gambling in NSW,” said the announcement.
Government figures from the NSW Gambling Survey 2024 put the proportion of adults in the state experiencing moderate risk gambling at 3.1 per cent, and high-risk gambling at 0.9 per cent.
While the Minns government reforms have seen the total of 87k EGMs across 2,100 clubs and hotels steadily decline during the past three years, forfeiture will increase from one in three to one in two and exemptions allowing them to be transferred without forfeiture will be tightened, plus a new ‘sinking cap’ will see the state maximum fall as entitlements are removed from circulation.
Stating in 2028, for the first time in NSW, a single statewide register will cover every hotel and club with gaming machines, replacing the current fragmented, voluntary system where enforcement is largely left up to individual venues and staff.
Bolstering the Register will be Mandatory Facial Recognition at the entry of gaming rooms. These programs will also support NSW Police efforts to prevent EGMs being used for money laundering and other criminal activity.
Looking ahead, the government says it is putting in place necessary infrastructure to facilitate “account-based” gaming in the future that will enable play using a registered account to play rather than anonymously.
The technology will allow a person sitting at any machine in NSW to set how long they play and how much they can spend.
A significant proportion of gaming machines and infrastructure rely on legacy technology. An upgrade to the Centralised Monitoring System (CMS) over the coming two years will allow for a transition, and allow venues to offer account-based play at their discretion.
Considerable technological advancements since the Cashless Gaming Trial in 2024 have provided several alternate solutions to achieve the same benefits to anti-money laundering and harm minimisation as so-called ‘cashless’ gaming, while allowing players to continue using cash if they prefer.
The initiatives include developing a strategy to reduce online gambling harm, strengthening enforcement against providers and illegal platforms with new offences and authority and tougher penalties.
All the reforms were developed to address issues stemming from the Independent Panel for Gaming Reform’s ‘Roadmap’, the Crime Commission’s Inquiry into Money Laundering via EGMs in hotels and clubs, and consultation with stakeholders and the broader community.
They stop short of adopting all motions put forward by Labor members at the recent caucus, which included calls for a new tax on Sydney’s richest clubs.
Rather, the NSW Government will work with industry to support hotels and clubs to diversify their hospitality, events and live entertainment offerings to reduce their reliance on gaming machines.
“These are common sense reforms that have been developed alongside industry, harm minimisation groups, stakeholders and privacy experts to address gambling harm while supporting the industry and protecting the livelihoods of the many people it employs,” declared Minister for Gaming and Racing David Harris.
“You could spend a whole lot of money removing machines that literally would make no difference to people experiencing harm, or stopping money laundering, so we’re focused on technology that will actually make a difference,” the Minister added.
Unions NSW secretary Mark Morey, who is headed for parliament at the next election and was involved in the push for gambling reform, described these as “real and solid progress” in reducing harm experienced by problem gamblers.
Industry body the Gaming Technologies Association (GTA) also welcomed the announcement.
GTA Members have been integral in the progression of gaming reform, providing millions in financial and human resources to initiatives including the first account-based gaming technology trials in 2022 and 2023 and the larger one conducted in 2024.
The Association says the development of technical standards to guide voluntary account-based play solutions will give its members the certainty they need in the space.
“GTA Members fully support reforms that strengthen responsible EGM play, while remaining flexible and workable for technology providers and venues to determine how best to implement approved measures,” says GTA CEO Jinesh Patel.
A summary of information on the reform package is available HERE.
