The New South Wales government has unveiled its NSW Gaming Reform package, emphasizing an evidence-based approach to enhance player protection. Premier Chris Minns announced the reforms as part of a commitment made during his election campaign to strengthen safeguards against gambling-related harm while imposing stricter regulations on the promotion of gaming activities.
This initiative stems from recommendations made by the Independent Panel for Gaming Reform, alongside extensive consultations with stakeholders and the broader New South Wales community. The government referred to the findings of the NSW Gambling Survey 2024, revealing that 3.1% of adults in the state face moderate gambling risks, with another 0.9% classified as high-risk gamblers.
David Harris, the Minister for Gaming and Racing, described the proposal as a comprehensive reform effort that incorporates increased regulation, innovative technology, and enhanced measures designed to mitigate gambling harm while sustaining the industry. The government has pledged to allocate AU$95.2 million (approximately US$68.1 million) over the next four years to facilitate these reforms.
“These are practical reforms developed in tandem with industry stakeholders, harm minimization advocates, and privacy experts,” said Harris, emphasizing the balance between addressing gambling harm and preserving the jobs associated with the industry. “Our government will continuously seek to implement emerging technologies to ensure New South Wales incorporates the latest safety measures in its gambling sector.”
The specific timeline for enacting the legislation that will support the NSW Gaming Reform package has yet to be disclosed.
Key components of the gambling reforms include the establishment of a statewide exclusion register, bolstered by mandatory facial recognition technology at all gaming room entrances. Presently, self-exclusion agreements are available only in certain hotels and clubs, with enforcement largely dependent on venue operators.
A third-party exclusion scheme will also be introduced, enabling friends and family members, as well as venue operators and law enforcement, to initiate exclusions for individuals who may be at risk of gambling addiction. The proposals aim to reduce the current 87,000 poker machines operated across 2,100 clubs and hotels by adjusting the trading forfeiture rate from one out of three to one out of two. Additionally, a ‘sinking cap’ will be implemented, which will lower the statewide cap as gaming machine entitlements are withdrawn from circulation.
Looking ahead, the government intends to advance towards account-based play, allowing for greater transparency concerning player identities. Recognizing that much of the gaming machine infrastructure currently relies on outdated technology, the government plans to upgrade its Central Monitoring System over the next two years to facilitate this transition.
The reforms also target harmful advertising practices in New South Wales. The NSW Gaming Reform Package will prohibit gaming-related VIP programs and restrict gambling advertising across government and council-owned properties. Betting service providers will only be able to market directly to individuals via phone calls, emails, or text messages with express consent. Additionally, new transparency measures will be enforced regarding gambling promotions by affiliates and influencers, limiting commissions tied to higher-risk gambling products.
In conjunction with these advertising restrictions, the government will work on a strategy aimed at minimizing online gambling harms while enhancing enforcement against illegal gambling operations, including imposing new offenses and stricter penalties.
