Gaming Reform Package
Find out what will be delivered under the NSW Gaming Reform Package, including a third-party exclusion scheme, a statewide exclusion register, mandated facial recognition technology, and more.
The NSW Government has announced a comprehensive suite of gaming reforms to minimise gambling harm, strengthen anti-money laundering protections and improve regulation.
A summary of the Gaming Reform Package is available in the NSW Government Gaming Reform Package.
Further information is available in the announcement, Stronger protections in major NSW gambling reform.
Overview of the reforms
The NSW Government is delivering on a key election commitment with the next and most comprehensive tranche of gaming reforms, giving people and families stronger protections against gambling harm and putting tougher rules around the way gambling is promoted and marketed.
The reforms in the NSW Gaming Reform Package are evidence-based and includes a statewide exclusion register with mandatory facial recognition technology at the entry of gaming rooms, a third‑party exclusion scheme in hotels and clubs, an increased forfeiture rate of 1 in 2, (from 1 in 3) and the end of VIP programs related to gaming.
It will also ban gambling advertising on all NSW Government and council-owned assets, ban unsolicited direct marketing to potential customers, and establish a state-based strategy to reduce online gambling harm.
As part of a staged approach, the Government will put in place the necessary infrastructure to facilitate future account-based play. Account-based play is a model that enables a person to use a registered account to play a poker machine, rather than gambling anonymously. However, a significant proportion of gaming machine infrastructure rely on legacy technology.
The Government will upgrade the Centralised Monitoring System (CMS) over the next two years to allow for a transition to this technology, which would better allow venues to enable account-based play at their discretion.
The Government will commit to developing a NSW strategy to reduce online gambling harm and strengthen enforcement against betting providers and illegal gambling platforms, with new offences, tougher penalties and stronger regulatory powers.
The suite of reforms has been developed in response to issues raised in a number of key reports, including the Roadmap for Gaming Reform prepared by the Independent Panel for Gaming Reform, the Crime Commission Inquiry into Money Laundering via Electronic Gaming Machines in hotels and clubs, and consultation with stakeholders and the broader community.
The key initiatives in the Gaming Reform Package are outlined below.
A new statewide exclusion register will allow people to voluntarily exclude themselves from gaming venues across NSW, bringing existing and future exclusions together under a single secure platform, allowing people to exclude only once. Mandatory FRT will support the statewide exclusion register and third-party exclusion scheme, it will be introduced at the same time as the register, which is expected to be in in 2028.
Third-party exclusion will allow for police, venue, family and friends-initiated exclusions from NSW hotels and clubs to help protect those experiencing significant gambling harm and provide law enforcement with tools to address criminal activity such as money laundering.
Third party exclusions will be implemented once the Statewide Exclusion Register is operational for a period of time.
A two-way communication protocol will be introduced that will modernise the NSW gaming machine fleet, providing better regulatory and harm minimisation capabilities. Upgrading the CMS to a two-way protocol (QCOM3) is also critical to supporting the implementation of account-based play.
While the transition to a two-way protocol takes place, innovation and technological advancements continue apace in the gaming industry. To ensure it is ahead of the latest developments, the Government will continue to work with industry to test and rollout emerging gaming technologies and account-based play via an Innovation Sandbox.
Increasing the forfeiture rate from one in three to one in two, so that for every two GMEs traded, one will be forfeited to further reduce the number of entitlements in NSW. A sinking cap on GMEs in NSW will be introduced to ensure the number of GMEs allowed in NSW continues to be reduced automatically, while venues will be able to voluntarily surrender their GMEs.
A range of exemptions to the forfeiture scheme will be amended or removed, including removing the reduced forfeiture exemption for new clubs establishing in an urban release area (known as the new development area and adjacent area exemption), tightening of exemptions for amalgamated clubs, as well as for hotels and clubs moving premises, which will be restricted to those moving a short distance of 1-5kms.
The reforms will introduce the requirement for monthly statements to be sent to all players registered for account-based play. Monthly statements will provide players with greater visibility of their gambling activity and spending patterns.
The Government will also review the mandatory gaming shutdown period as evidence shows higher risk gamblers play in the early hours of the morning. Any proposed changes will be informed by consultation with stakeholders, as well as evidence of gambling harm and operational impacts.
The Government will be ending the use of VIP programs related to gaming to strengthen protections for people experiencing gambling harm. This recognises the link between VIP programs and increased frequency of gambling, longer gambling sessions and higher expenditure.
The gambling advertising ban on public transport will be extended to all NSW Government and council-owned assets.
Unsolicited direct marketing from online wagering providers which includes cold calling, emails and text messages will be banned. There will be a ban on commission payments to staff or affiliates and influencers that are based on a customer’s wagering activity or losses to ensure that operators do not target particularly vulnerable customers. It is intended these reforms complement Australian Government reforms. For any other type of affiliate marketing arrangement, full public disclosure provisions will apply.
The Government will work with industry to develop a program to reduce hotels and clubs’ reliance on gaming machine revenue with support to diversify their hospitality, events and live entertainment offerings.
The Government will strengthen regulatory oversight of both gaming machines and online gambling.
This includes expanding the range of compliance enforcement options, increasing enforcement powers, developing ongoing suitability requirements for online bookmakers, closing legal loopholes, creating new offences, increasing penalties for breaches of laws, and removing ambiguity.
The Government has committed to developing a comprehensive NSW strategy to reduce online gambling harm.
The package provides a $20 million boost to the Responsible Gambling Fund over the next two years to support delivery of its array of services and programs to prevent and address gambling harm.