On Tuesday, the New South Wales government unveiled its NSW Gaming Reform package, emphasizing player protection through an evidence-based framework. Chris Minns, the Premier of New South Wales, stated that the reforms fulfill a significant electoral promise by bolstering protections against gambling-related harm while tightening regulations on advertising in the sector.
These reforms stem from recommendations made by the Independent Panel for Gaming Reform, alongside wider discussions with key stakeholders and the community in New South Wales. The government also referred to the NSW Gambling Survey 2024, revealing that 3.1% of the adult population is experiencing moderate risk from gambling, while 0.9% face high-risk gambling issues.
David Harris, the Minister for Gaming and Racing, described the package as a comprehensive overhaul that integrates stricter regulations, innovative technologies, and enhanced safeguards aimed at minimizing gambling harm while also supporting the thriving industry. To fund these reforms, the government has committed AU$95.2 million (approximately US$68.1 million) over the next four years.
"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," Harris explained. He added that the government plans to continually explore and integrate emerging technologies to ensure New South Wales maintains up-to-date safety measures within its gambling sector.
The details concerning the legislative timeline supporting the NSW Gaming Reform package have not yet been specified.
What do the gambling reforms entail?
Among the provisions of the NSW Gaming Reform package is the establishment of a statewide exclusion register, which will incorporate mandatory facial recognition technology at all gaming room entrances. Currently, self-exclusion agreements are voluntary and only accessible in select hotels and clubs, with enforcement left largely to venue staff.
The reform also introduces a third-party exclusion scheme, enabling friends and family members to initiate exclusions for individuals at risk of excessive gambling, alongside provisions for venues and police involvement.
Furthermore, the government plans to cut the total number of poker machines from 87,000, currently distributed across 2,100 venues, by increasing the forfeiture rate for gaming machine entitlements traded from one in three to one in two. A 'sinking cap' has been announced, which will lower the statewide cap as gaming machine entitlements are removed from circulation.
Moreover, the administration is advocating for a switch to account-based play, which will increase transparency regarding who is engaging in gaming activities. Recognizing that much of the current gaming infrastructure relies on outdated technology, there are plans to upgrade the Central Monitoring System over the next two years to facilitate the transition to account-based play.
Stronger restrictions on advertising in New South Wales
The NSW Gaming Reform Package is also set to enhance protective measures against damaging advertising in the gambling sector. It will prohibit gaming-related VIP programs and halt all gambling advertisements on assets owned by the New South Wales government and its councils.
Betting service providers will only be allowed to contact individuals for marketing purposes via phone calls, emails, or text messages after obtaining explicit consent. Additionally, new transparency obligations will be imposed on gambling promotions conducted by affiliates and influencers, including limits on commissions tied to higher-risk gambling products.
Beyond advertising limitations, the government is dedicated to crafting a strategy aimed at mitigating harm from online gambling, alongside strengthening the enforcement frameworks against illegal operators, introducing new offenses and stiffer penalties.
