Comprehensive Package Aims to Strengthen Harm Minimization, Ban VIP Programs, and Accelerate Reduction of Gaming Machines
The New South Wales (NSW) government has unveiled a sweeping package of gaming reforms designed to significantly bolster harm-minimisation safeguards across pubs and clubs. The initiative introduces mandatory facial recognition technology at gaming-room entrances, bans gaming-linked VIP programs, and establishes a single statewide self-exclusion register.
The reforms arrive in response to findings from the NSW Gambling Survey 2024, which indicated that 3.1% of the state’s adult population experienced moderate-risk gambling, while 0.9% faced high-risk gambling challenges.
Statewide Exclusion Register and Facial Recognition
Scheduled for full implementation in 2028, the new NSW Statewide Exclusion Register will replace the current fragmented system, which relies on individual venues and staff to manually monitor compliance across isolated locations.
Combined with mandatory facial recognition technology installed at gaming-room entry points, the register will allow self-exclusion choices to apply uniformly across every hotel and club housing gaming machines. The government notes this unified framework provides a seamless and reliable tool for individuals choosing to restrict their access to gambling environments.
Cashless Gaming Upgrades and Marketing Restrictions
Over the next two years, the state will upgrade its Centralised Monitoring System to support a smoother transition toward account-based play, overcoming previous limitations posed by legacy technology. The updates aim to deliver enhanced anti-money-laundering and harm-minimisation benefits while preserving player flexibility.
Concurrently, strict marketing and promotional overhauls will take effect:
- VIP Program Ban: All gaming-linked VIP schemes will be prohibited.
- Asset Advertising Restrictions: Gambling advertisements on government and council-owned assets will be banned.
- Direct Communication Rules: Betting service providers are barred from contacting potential customers via phone calls, emails, or text messages without prior express consent.
- Affiliate Transparency: Stricter rules will govern social media influencers and affiliates, including limitations on commissions tied to high-risk products.
Accelerating Machine Reductions
To address the state’s existing pool of 87,000 gaming machines spread across 2,100 clubs and hotels, the trade forfeiture rate for gaming entitlements will increase from 1 in 3 to 1 in 2. Under this revised rate, one entitlement will be permanently removed for every two traded, backed by a sinking cap designed to steadily lower the statewide machine limit.
Funding and Industry Collaboration
The reform package is backed by an AU$95.2 million investment spanning four years, funded through the remaining balance of the state’s AU$100 million gambling harm-minimisation fund alongside increased licence fees for venues operating gaming machines.
Minister for Gaming and Racing David Harris emphasized that the measures were crafted in close consultation with industry participants, harm-minimisation advocates, privacy experts, and key stakeholders to balance strong consumer protection with industry viability.
