To operate gaming machines in NSW venues you must have a hotel or club licence.
Hotel and club licensees also require permits or entitlements (up to their maximum threshold) to operate gaming machines. The number of permits or entitlements you can have depends on the threshold for your venue.
In addition to the following, you should also see our pages on:
- Gaming machine regulation - including management of machines
- Mandatory training for those working with gaming machines.
Some common terms related to gaming machine authorisations, entitlements and permits:
- Gaming Machine Threshold (GMT) - defines the maximum number of GMEs and/or PMPs that can be held by the premises.
- Gaming Machine Entitlement (GME) - the right to operate a gaming machine at the hotel or club.
- Poker Machine Permit (PMP) – another form of authorisation required for operating gaming machines.
Hotel gaming machine entitlements and permits
A hotel licence allows the licensee to operate gaming machines in the venue. This is in addition to selling and serving alcohol on and off premises.
Entitlements and thresholds
The GMT defines the maximum number of GMEs and PMPs for your premises. In other words, the maximum number of gaming machines you can operate in your hotel.
- There must be one GME and/or one PMP for each gaming machine at the hotel
- A hotel’s GMT is limited by the floor space of the premises of the hotel
- Hotels can have up to a maximum of 30 gaming machines
- If you have more than 10 gaming machines you must have them in a separate Hotel Gaming Room.
New licence or new premises
For new hotel licences, or when a hotel relocates to a different premises, the GMT for the hotel is automatically set to zero. To operate gaming machines you need to apply for an increase in your GMT.
Applying for a GMT increase
GMT cannot be increased if the hotel is (or will be) in a retail shopping center or in the immediate vicinity of:
- a school
- a place of public worship
- a hospital.
Generally a Local Impact Assessment (LIA) must accompany an application for a GMT increase. In some cases, GMT for a hotel premises can be increased when transferring GMEs from in the local area or if it in a Brand 1 SA2.
The Independent Liquor and Gaming Authority (ILGA) makes decisions to increase GMT, or transfer GMEs and PMPs in line with liquor and gaming legislation. The research and evidence ILGA considers includes crime, demographic and health statistics.
Acquiring from existing supply
As part of the NSW Government's gradual reduction strategy, each hotel must acquire GMEs and PMPs from within the existing supply of other hotels.
Transfer of GMEs generally attracts a compulsory forfeiture of one GME in every block of two or three GMEs being transferred.
Leasing of GMEs. Hotels with 10 or less GMEs may lease these to other hotels (subject to ILGAs approval) Leased GME’s moving between venues do not attract forfeiture.
Club gaming machine entitlements
A club licence allows the licensee to operate gaming machines. This is in addition to selling and serving alcohol on and off premises.
Entitlements and thresholds
TheGMT defines the maximum number of GMEs for your premises. In other words, the maximum number of gaming machines you can operate in your club.
- You must have one GME for each gaming machine.
- A club’s GMT is limited by the floor space of the premises of the club.
For new club licences, or when a club relocates to a different premises, the GMT for the club is automatically set to zero. To operate gaming machines you need to apply for an increase in your GMT.
Applying for a GMT increase
GMT cannot be increased if the club is (or will be) in a retail shopping center, or in the immediate vicinity of:
- a school
- a place of public worship
- a hospital.
Generally a Local Impact Assessment (LIA) must accompany an application for a GMT increase. In some cases, GMT for a club can be increased when also transferring GMEs from in the local area or if it is in a Band 1 SA2.
Clubs wishing to increase their GMT over 450 who do not have to complete an LIA, must still demonstrate that:
- approving the application will provide additional benefits to club members or the community
- the club will manage any negative impact from the additional gaming machines on the amenity of the local area.
The Independent Liquor and Gaming Authority (ILGA) makes decisions in line with liquor and gaming legislation. The research and evidence ILGA considers includes crime, demographic and health statistics.
Acquiring from existing supply
As part of the NSW Government's gradual reduction strategy, each club must acquire GMEs from within the existing supply of other clubs.
Transfer of GMEs generally attracts compulsory forfeiture of one GME in every block of two or three GMEs being transferred.
Leasing of GMEs. Clubs with 30 or less GMEs may lease these to other clubs (subject to ILGAs approval) Leased GME’s moving between venues do not attract forfeiture.
Late-night gaming applications
The Independent Liquor and Gaming Authority (the Authority) has developed Guideline 16 which assists venues when making applications that involve late-night gaming.
Gaming Plan of Management
All gaming venues must have implemented a Gaming Plan of Management (GPOM). This can be used to support an application. For example, you should submit a GPOM if you are applying to increase the availability of gaming machines at your venue.
A GPOM includes:
- Responsible gambling (RCG) goals and obligations
- Harm minimisation steps
- Staff and patron guidance.
What is a Gaming Plan of Management?
A Gaming Plan of Management (GPOM) provides a framework for both patrons and staff in understanding and managing the potential impacts of gambling. It outlines your venue’s approach to managing gambling risks.
A GPOM:
- Identifies a venue’s responsible conduct of gambling (RCG) obligations and goals and commits the venue to implementing appropriate harm minimisation measures
- Provides guidance to you and your staff on the actions that will be taken to ensure compliance with your obligations under the gaming laws and your licence
- Supports best practice in your approach to RCG.
Find out more about doing a GPOM
Read the Gaming Plan of Management Factsheet for more information about what should be included in a GPOM.
Also see our Gaming Plan of Management page.