The New South Wales government unveiled its comprehensive NSW Gaming Reform package on Tuesday, emphasizing an evidence-based approach to enhance player protection. Led by Premier Chris Minns, the government aims to fulfill a significant commitment from its election campaign by implementing stricter safeguards against gambling-related harm and imposing tougher regulations on marketing activities.
This reform initiative draws upon recommendations from the Independent Panel for Gaming Reform and has been shaped by wider consultations with stakeholders and the community in New South Wales.
In conjunction with the announcement, the government referenced findings from the NSW Gambling Survey 2024, which reported that 3.1% of adults in the state engage in moderate-risk gambling, while 0.9% face high-risk gambling situations.
"This package represents a comprehensive and evidence-driven overhaul, integrating stricter regulations, innovative technology, and enhanced protective measures aimed at curbing gambling harm while still bolstering the industry," stated David Harris, the New South Wales Minister for Gaming and Racing.
The government has allocated AU$95.2 million (approximately US$68.1 million) over the next four years to implement these reforms. Harris articulated, "These sensible reforms have been developed alongside industry players, harm minimization advocates, stakeholders, and privacy professionals to mitigate gambling harm while ensuring the industry's viability and safeguarding the livelihoods of the many people it supports."
He added that the government will consistently seek and adopt emerging technologies to ensure that New South Wales maintains up-to-date safety measures in its gambling sector.
At present, the timeline for introducing the legislation that will support the NSW Gaming Reform package remains unspecified.
What are the key components of the gambling reforms?
Among the notable elements of the NSW Gaming Reform package is the establishment of a statewide exclusion register, which will leverage mandatory facial recognition technology at all gaming room entrances. Currently, the existing self-exclusion arrangement is limited to select hotels and clubs, and its implementation largely falls upon venue operators and staff.
The reform also introduces a third-party exclusion scheme, empowering friends and family, along with venues and police, to initiate exclusions on behalf of individuals at risk of gambling addiction.
Additionally, the government plans to reduce the number of poker machines from the existing 87,000 across 2,100 venues. This reduction strategy includes increasing the forfeiture rate associated with trading gaming machine entitlements from one in three to one in two.
There will also be a "sinking cap," which entails a decrease in the statewide cap as gaming machine entitlements are phased out. Looking towards the future, the government is advocating for account-based gaming, aiming to provide greater visibility into player activity.
Recognizing the outdated technology prevalent in many gaming operations, the government intends to upgrade the Central Monitoring System over the next two years to facilitate a seamless transition to account-based gaming.
Stricter advertising regulations in New South Wales
The NSW Gaming Reform Package places a strong emphasis on reducing harmful advertising associated with gambling. As part of this initiative, gaming-related VIP programs will be prohibited, and all gambling advertisements will be restricted on government and council-owned properties.
Betting service providers will now require explicit consent before directly marketing to individuals via calls, emails, or text messages. Moreover, new transparency mandates will be imposed on gambling promotions by affiliates and influencers, including limitations on commissions for promoting higher-risk gambling products.
Finally, the New South Wales government has committed to devising a strategy aimed at mitigating online gambling harms and enhancing enforcement against illegal operators, introducing new offenses and stricter penalties.
