On Tuesday, the New South Wales government unveiled its NSW Gaming Reform package, centering on an evidence-based strategy aimed at bolstering player protection. This initiative, championed by Premier Chris Minns, aims to fulfill a key election promise by enhancing safeguards against gambling harm while tightening regulations on advertising within the sector.
Developed in response to recommendations from its Independent Panel for Gaming Reform and insights from discussions with various stakeholders and community members, the package reflects the government’s commitment to a safer gambling environment. According to the NSW Gambling Survey 2024, 3.1% of adults in the state engage in moderate-risk gambling, while 0.9% face high-risk levels.
David Harris, the New South Wales Minister for Gaming and Racing, emphasized that the proposed reforms represent a comprehensive overhaul that combines stricter regulations, new technologies, and robust safeguards designed to mitigate gambling harm while also supporting the industry. The government plans to allocate AU$95.2 million (US$68.1 million) over the next four years to implement these reforms.
"These are common-sense reforms developed alongside the industry, harm minimization groups, stakeholders, and privacy experts to tackle gambling harm while safeguarding the industry and the jobs it supports," Harris stated. He added that the government will continuously seek out and apply new technologies to ensure that New South Wales adopts the latest safety measures within its gambling ecosystem.
Although specific timelines for the supporting legislation remain unclear, the reforms include the establishment of a statewide exclusion register, which will be reinforced by mandatory facial recognition technology at the entrances of all gaming venues. Currently, a voluntary self-exclusion option exists, but its implementation is largely reliant on the discretion of individual venues and their staff.
Notably, the package introduces a third-party exclusion scheme that allows friends and family to initiate exclusions for at-risk individuals, including venues and law enforcement agencies. To address the current density of poker machines, which number around 87,000 across 2,100 clubs and hotels, the government intends to increase the forfeiture rate on trading gaming machine entitlements from one in three to one in two, effectively leading to a reduction in machine availability.
Additionally, the reform plan features a "sinking cap," which will lower the statewide cap as gaming machine entitlements are gradually removed from circulation. Looking ahead, the government is advocating for an account-based play system that would enhance tracking and transparency of player activity. Recognizing the extensive legacy technology in current gaming infrastructures, the government is committed to overhauling the Central Monitoring System within the next two years to facilitate this shift.
The NSW Gaming Reform package also focuses on tightening restrictions on advertising associated with gambling. It includes a ban on VIP gaming-related programs and prohibits gambling advertisements on properties owned by the New South Wales government and local councils. Direct marketing from betting service providers, such as phone calls, emails, or texts, will only be allowed with explicit consent from individuals.
Furthermore, the initiative introduces new requirements for transparency surrounding gambling promotions made by affiliates and influencers, implementing limits on commissions concerning higher-risk gambling products. Beyond these advertising restrictions, the New South Wales government is also committed to creating a strategy aimed at mitigating the harms associated with online gambling and intensifying enforcement against illegal operators, which will involve establishing new offenses and harsher penalties.
