NSW Gambling Reform: AU$95M Package Targets 87,749 Pokies

Kyle Kevin

iGaming Writer

Fact Checked

New South Wales will mandate facial recognition in every gaming room and ban VIP programmes as part of a AU$95.2 million reform package aimed at cutting gambling harm.

New South Wales will spend AU$95.2 million over four years on the most sweeping gambling reform package in its history. Premier Chris Minns announced the NSW Gaming Reform package on Tuesday, framing it as delivery on a key election commitment. Gaming and Racing Minister David Harris called the measures “common sense reforms” developed alongside industry, harm minimisation groups and privacy experts. The package targets the state’s 87,749 poker machines spread across 2,100 clubs and hotels. NSW holds more than half of all gaming machines in Australia and nearly triple the per-capita rate of Victoria, the next largest state. A 2025 audit found it would take 55 years to reach the national average at current reduction rates. The government is now accelerating that timeline. Key measures include mandatory facial recognition in all gaming rooms, a statewide exclusion register replacing the current venue-by-venue system, a third-party exclusion scheme for families and friends, a ban on VIP programmes, a one-in-two forfeiture rate for traded machine entitlements, and a sinking cap that falls as machines leave circulation. The government also committed to developing an online gambling harm reduction strategy and strengthening enforcement against illegal operators. The timeline remains vague. No legislation has been introduced yet. The government has signalled a five-year phase-in period, meaning full implementation could stretch to 2031.

NSW Gambling Reform: The Core Measures

The reform package rests on four pillars: technology, exclusion, machine reduction and advertising restriction. Harris said the government would “continually explore and implement emerging technology to ensure NSW has the most up-to-date safety measures available.” The AU$95.2 million investment will fund the technology rollout, regulatory upgrades and enforcement capacity. The NSW Gambling Survey 2024 underpins the urgency. It found 3.1% of the state’s adult population — roughly 250,000 people — experienced moderate-risk gambling. Another 0.9% — roughly 72,000 people — experienced high-risk gambling. Those figures translate into significant social and economic costs. The government estimates that more than a million Australians have experienced harm in the past year due to another person’s gambling. The reforms are not starting from scratch. NSW has already banned external gambling signage at pubs and clubs, lowered the cash feed-in limit on new machines from AU$5,000 to AU$500, and prohibited political donations from clubs with gaming machines. The 2024 lowering of the legislative cap from 99,000 to 95,739 machine entitlements was a preliminary step. However, the actual number of operating machines has risen to 88,000 since Labor took office, driven by post-COVID recovery and entitlement trading. The new package aims to reverse that trend. The government will upgrade the Central Monitoring System over two years to prepare for account-based play. That system tracks machine activity statewide and is the backbone of regulatory oversight. Legacy infrastructure has slowed previous reform efforts. The upgrade should enable real-time data on who is playing, how much they are losing, and whether they are on an exclusion list.

Facial Recognition and the Statewide Exclusion Register

The most technically ambitious element is the facial recognition mandate. Every hotel and club with gaming machines will be required to install facial recognition technology at gaming room entrances. The system will feed into a statewide exclusion register, replacing the current fragmented arrangement where self-exclusion agreements are venue-specific and enforcement depends on staff memory. Mandatory facial recognition and the statewide register will become enforceable policies in 2028, according to government documents. The technology will identify excluded patrons automatically as they enter gaming areas. A human staff member must still verify any match before intervention. The government has built “strict parameters” into the reforms to protect privacy. Venues cannot use the technology for marketing, surveillance or tracking. Data can only be used for exclusion purposes. A voluntary Code of Practice, released in March 2026, already guides venues using the technology. It covers privacy risk identification, hardware standards, secure data storage, signage requirements and staff training. The code was developed with input from the Office of the Australian Information Commissioner and Cyber Security NSW. The third-party exclusion scheme adds another layer. Family members, friends, venues and police can apply to exclude individuals experiencing gambling harm. The proposed minimum exclusion period is 12 months, extendable to three years. A temporary 21-day ban can apply while an application is under review. AGBrief tracks biometric technology deployment in gaming venues across Asia-Pacific markets.

Shrinking the Poker Machine Fleet

NSW has the highest number of poker machines per capita of any jurisdiction on Earth. Annual losses are on track to exceed AU$10 billion. The government aims to cut the fleet through two mechanisms. First, it will increase the forfeiture rate on traded gaming machine entitlements from one in three to one in two. Under the current rate, roughly 3,600 machines were forfeited between 2011 and 2024 — an average of 273 per year. At a one-in-two rate, an estimated 5,100 machines could have been removed in the same period. The change accelerates the natural attrition that occurs when venues buy and sell entitlements. Second, the government is introducing a “sinking cap.” The statewide cap will fall as entitlements are removed from circulation. The current legislative cap is 95,739, lowered from 99,000 in December 2024. However, only 87,749 machines are actually operating. The gap means nearly 8,000 additional machines could enter service without breaching the cap. The sinking cap addresses that slack. Labor had originally promised to buy back 2,000 machines directly, but abandoned the plan citing a AU$60 million cost. The forfeiture rate increase is now the primary reduction tool. A 2025 audit by the NSW Auditor-General found that at the current rate, it would take 55 years for NSW to reach the national average for machines per 1,000 adults. The one-in-two rate should shorten that timeline substantially, though exact projections depend on trading volume. The government has also imposed a moratorium on new gaming machine entitlements. No additional licences will be issued to clubs or pubs. Venues can still buy entitlements from each other, subject to regulatory approval, but the total pool will shrink over time.

Advertising Crackdown and Online Gambling Strategy

The reform package extends beyond physical venues into marketing and digital gambling. VIP programmes will be banned outright. These schemes reward high-volume players with perks, bonuses and personalised service. The government argues they incentivise excessive gambling and target problem gamblers specifically. Gambling advertising will be blocked on all NSW government and council-owned assets. That includes public transport, bus shelters, council billboards and government buildings. Betting service providers will need express consent before marketing directly to individuals via phone, email or text. New transparency requirements will apply to gambling promotions by affiliates and influencers. Commissions for higher-risk gambling products will be restricted. The government is also developing a strategy to reduce harms from online gambling. That strategy will address the growing share of gambling activity moving from physical machines to digital platforms. Enforcement against illegal operators will strengthen, with new offences and tougher penalties. The government is coordinating with the Department of Information and Communications Technology, the National Telecommunications Commission and the Cybercrime Investigation and Coordination Centre on prosecutions. The political backdrop is tense. Labor holds minority government in the lower house and does not control the upper house. Poker machine reforms require crossbench support. Only seven sitting weeks remain before the March 2027 election. A five-year phase-in means full implementation could stretch to 2031 — eight years after Labor was elected. Some Labor members have expressed frustration. One source told the Sydney Morning Herald: “We have basically sat on our hands for four years on this stuff and done jack shit.” The Minns government is now racing to pass legislation before the election. Whether it can secure the necessary votes in time remains uncertain.

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