This month hundreds more NSW pubs and clubs will be required to exercise the mandatory six-hour daily gaming machine shutdown as the state government revokes what are deemed ‘outdated’ exemptions.
In December Minister for Gaming & Racing David Harris announced exemptions would cease 31 March.
It was noted that 672 venues held a varied shutdown period, representing around 20 per cent of all clubs and pubs with EGMs. These venues did shutdowns of typically three hours instead of six, and many have been in place for decades.
Amongst those with a ‘hardship’ exemptions were three of the 10 most profitable clubs in the state.
Legislation stipulating a six-hour shutdown of gaming machines was introduced in 1997 as a harm minimisation measure intended to force players to have a break in play.
A review of the framework was conducted in 2024 by Liquor & Gaming NSW, finding the standard minimum six-hour shutdown, commencing no later than 4am, is an effective measure for minimising gambling harm.
The University of Sydney Gambling Treatment & Research Clinic’s Professor Sally Gainsbury and Dr Robert Heirene say the data backs up the policy.
“Evidence from international jurisdictions shows that reduced opening hours of gambling venues results in reduced spending associated with problematic gambling,” says Gainsbury, director of the Clinic at the School of Psychology.
“Most people support longer shutdown periods which also reduce risks for staff related to disrupted sleep cycles, which can have long-term negative consequences for health and mental health.”
Dr Heirene, Research Fellow at the Clinic, says the greatest harm comes in the early hours, and he welcomes the change.
“Research has shown most people using pokies late at night are those at risk of gambling-related problems and harms.
“Revoking these exemptions represents an important and impactful step towards reducing the large burden of harms attributable to pokies in NSW.”
The outgoing exemptions had been granted for reasons such as the venue being in high traffic ‘tourist’ locations, having a history of earlier opening hours, or due to financial hardship. Many had been prompted to apply because a local competition had one, creating clusters.
However, a recent review determined most of the exemptions were not in tourist or entertainment precincts, and were in place at 25 of the 30 most profitable clubs.
The highest concentration of variations outside the Sydney CBD – in Canterbury-Bankstown, Blacktown, Fairfield and Cumberland – correlated with the highest number of machines and profits. Campsie RSL, Fairfield RSL and Cabra-Vale Diggers are said to derive over 90 per cent of their revenue from gaming.
From 1 April all NSW venues with gaming will be required to shut down all EGMs from 4am to 10am each day, in the wake of 659 exemptions revoked by Liquor & Gaming NSW and the Independent Liquor & Gaming Authority.
The Minns Labor Government allowed venues to put a case to Liquor & Gaming to retain their exemption under the legislation and revised Ministerial Guidelines. A total of 62 venues applied, but of the 49 applications assessed to date, all have been revoked. Hundreds more did not even make a submission.
That leaves 13 venues still under assessment, with outcomes expected by the start date.
Beyond the commencement in April Liquor & Gaming will be undertaking a compliance campaign to ensure all venues are abiding by the changes.
Considered a key measure in NSW continuing to reduce gambling harm, the revised mandate still leaves the state behind some other jurisdictions; around half of all Queensland pubs and clubs cease gaming machine trading at midnight.
And more than three years since the NSW Crime Commission suggested cashless gaming may be the best policy to reduce the millions of dollars being laundered through gaming machines, Premier Chris has his doubts about the concept.
“We’re looking at all potential options, but I’m not prepared to sign up to that remedy because I’m not convinced it is a remedy,” he told ABC 702.
Elected amid a frenzy of public interest in the matter, spurred by the declarations of the previous Premier, the Minns administration has implemented a suite of gaming reforms since coming into office. These include:
- Reducing the cash input limit on new machines, from $5k to $500
- Reducing the state-wide cap on gaming machine entitlements
- Banning political donations from clubs with EGMs
- Banning external gaming-related signage and limiting internal gaming-related signage
