New South Wales confirms major gaming reforms with statewide exclusion register
The government has detailed plans for mandatory facial recognition, tougher rules on gambling marketing and a higher forfeiture rate for gaming machine entitlements.
Australia.- The New South Wales government has presented its anticipated package of gaming reforms. The measures include a statewide exclusion register covering all hotels and clubs with gaming machines backed by mandatory facial recognition technology at gaming room entrances. The system is expected to be introduced in 2028 and will replace the current fragmented voluntary self-exclusion framework.
Under the new system, people who choose to exclude themselves from gambling will be able to register through a single statewide framework, allowing their exclusion to follow them from venue to venue. The technology will also support NSW Police efforts to prevent gaming machines from being used for money laundering and other criminal activity.
The reforms will also accelerate the reduction of gaming machines across NSW. The state currently has around 87,000 poker machines across approximately 2,100 clubs and hotels. The forfeiture rate for gaming machine entitlements will increase from one in three to one in two. This means that for every two entitlements traded, one will be permanently removed from circulation.
The Government will also introduce a new sinking cap while tightening exemptions that have allowed some transfers to occur without forfeiture. Venues will also be given the option to voluntarily cancel gaming machine entitlements.
The government intends to upgrade NSW’s Centralised Monitoring System over the next two years to support a future transition to registered account-based play, although venues would retain discretion over whether to enable the technology.
The reform package also targets gambling advertising and marketing. VIP programmes linked to gaming will be banned, while gambling advertising will be prohibited on NSW Government and council-owned assets. Betting service providers will also be prohibited from contacting potential customers directly by phone, email or text without their express prior consent.
New transparency requirements will apply to gambling promotions involving affiliates and social media influencers, while commissions associated with higher-risk gambling products will also face restrictions. The government said it will develop a strategy to reduce online gambling harm and strengthen enforcement against betting providers and illegal gambling platforms.
The reforms follow recommendations and issues identified through reviews and inquiries, including the Roadmap for Gaming Reform prepared by the Independent Panel for Gaming Reform and the Crime Commission Inquiry into Money Laundering via Electronic Gaming Machines in hotels and clubs. The government will invest AU$95.2m (US$61.8m) over four years to fund the reforms, with funding coming from the remaining balance of the AU$100m gambling harm minimisation fund and increased licence fees for clubs and hotels operating gaming machines.
A further AU$20m (US$13m) will be allocated to the Responsible Gambling Fund over the next two years to support harm prevention and intervention services, including GambleAware. The government also said it will work with hotels and clubs to support diversification into hospitality, events and live entertainment, with the aim of reducing venues’ reliance on gaming machine revenue.
David Harris, NSW minister for Gaming and Racing, said: “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 said.
