The government of New South Wales introduced its NSW Gaming Reform package on Tuesday, focusing on evidence-based strategies to enhance player protection. Under the leadership of Premier Chris Minns, the reforms aim to address gambling harm and enforce stricter marketing regulations, fulfilling a significant election promise.
The development of the package draws on recommendations made by the Independent Panel for Gaming Reform and incorporates input from various stakeholders and the broader New South Wales community.
The NSW Gambling Survey 2024 revealed that 3.1% of adults in the state face moderate gambling risks, while 0.9% are classified as high-risk gamblers.
David Harris, the New South Wales minister for gaming and racing, described this comprehensive package as a necessary overhaul that integrates tighter regulations, advanced technology, and enhanced safeguards to mitigate gambling-related harm while simultaneously supporting the industry. The government has allocated AU$95.2 million (US$68.1 million) over four years to implement these reforms.
“These are common sense reforms developed with input from industry stakeholders, harm minimization groups, and privacy specialists,” Harris said. “We aim to tackle gambling harm while safeguarding industry jobs.” He also emphasized the government's commitment to leveraging emerging technologies to ensure the gambling sector in New South Wales maintains the highest safety standards.
The timeline for the legislation accompanying the NSW Gaming Reform package has not yet been established.
What’s included in the gambling reforms? The NSW Gaming Reform package proposes a statewide exclusion register, reinforced by mandatory facial recognition technology at all gaming room entrances. Currently, the self-exclusion agreements are available only in select hotels and clubs, and their enforcement relies primarily on individual venue staff.
A new third-party exclusion scheme will enable friends and family members to initiate exclusions for individuals who may be gambling excessively, alongside direct involvement from venues and the police.
The package also aims to reduce the total number of poker machines from 87,000, currently spread across 2,100 clubs and hotels. This will be achieved by increasing the forfeiture rate for gaming machine entitlements when they are traded, from one in three to one in two.
A "sinking cap" will be established, reducing the statewide limit as gaming machine entitlements are removed from operation. Moreover, the government plans to introduce account-based play in the future, promoting better oversight of player activities. Given that much of the gaming machine infrastructure relies on outdated technology, an upgrade to the Central Monitoring System is planned over the next two years to facilitate this transition.
Stronger advertising restrictions form another key component of the NSW Gaming Reform Package, aimed at enhancing protections against damaging gambling advertising. Specifically, it will ban gaming-related VIP programs and prohibit all gambling advertising on government and council-owned properties in New South Wales.
Betting service providers will now require explicit consent to market directly to individuals through phone calls, emails, or text messages. New transparency measures will hold gambling promotions through affiliates and influencers to stricter guidelines, particularly regarding commissions for high-risk gambling products.
In addition to these advertising controls, the New South Wales government is committed to developing a strategy to mitigate online gambling harms and enhancing enforcement against illegal gambling operations, with the introduction of new offences and harsher penalties.
