The government of New South Wales unveiled its NSW Gaming Reform package on Tuesday, taking a comprehensive, evidence-driven stance to enhance player protections in the gambling sector.
Under the leadership of Premier Chris Minns, the initiative fulfills a major election pledge aimed at strengthening defenses against gambling-related harm and tightening regulations around marketing practices associated with gambling.
The reforms draw on insights from the Independent Panel for Gaming Reform and extensive consultations with community stakeholders. An important reference point for these reforms is the NSW Gambling Survey 2024, which indicates that 3.1% of adults in the state face moderate gambling risks, while high-risk gambling affects 0.9% of the population.
David Harris, the New South Wales Minister for Gaming and Racing, described the reforms as a thorough, evidence-based revamping of regulations, integrating advanced technology and robust safeguards designed to mitigate gambling harm while still supporting the industry.
The state plans to allocate AU$95.2 million (approximately US$68.1 million) over the next four years to finance these reforms.
"These are common-sense measures developed with industry insight, harm reduction advocates, stakeholders, and privacy specialists to minimize gambling harm while sustaining the industry's viability and protecting jobs," Harris stated.
He assured that the government would continue to pursue advancements in technology to ensure New South Wales maintains the most effective safety protocols within its gambling sector.
However, the timeline for implementing the legislation tied to the NSW Gaming Reform package remains unspecified.
The gaming reform initiatives include the establishment of a statewide exclusion register supported by mandatory facial recognition technology at all gaming room entrances. Currently, a voluntary self-exclusion option is available but applies only to select hotels and clubs, leaving enforcement largely to venue staff.
The new reforms introduce a third-party exclusion scheme enabling friends and family to initiate bans for individuals they believe are at risk of problematic gambling, alongside potential involvement from venues and law enforcement.
A significant reduction in poker machines is planned, targeting a decrease from approximately 87,000 across 2,100 establishments. The government aims to achieve this by adjusting the forfeiture rate on gaming machine entitlements traded from a one in three to a one in two ratio.
Additionally, a so-called "sinking cap" will be implemented, resulting in a gradual decrease in the statewide cap as gaming machine entitlements are removed.
Plans for an account-based play system are also on the table, which would enhance oversight of gambling behavior. Acknowledging the reliance on outdated technology in gaming infrastructure, the government intends to upgrade the Central Monitoring System over the next two years to support this transition.
The reform package also targets harmful advertising practices. VIP gaming programs are set to be banned, and gambling advertisements will be prohibited on government-owned properties. Betting service providers will be required to obtain explicit consent before directly reaching out to individuals via phone, email, or text.
Increased transparency will be required for gambling promotions by affiliates and influencers, limiting commissions for higher-risk gambling products. Furthermore, the government has committed to creating a strategy to tackle online gambling-related harms and to ramp up enforcement against companies operating illegally, including introducing new offences and harsher penalties.
