New South Wales proposes facial recognition, stronger exclusion tools and tighter advertising rules in a major overhaul of gambling harm protections.

The New South Wales government has unveiled a sweeping package of gambling reforms aimed at strengthening player protection, reducing exposure to gambling advertising and introducing new technology across the state’s gaming industry.

The NSW Gaming Reform package, announced by the government of Premier Chris Minns, follows recommendations from the Independent Panel for Gaming Reform and consultation with industry stakeholders, harm-minimisation groups, privacy experts and the wider community.

The government has committed AU$95.2 million (US$68.1 million) over four years to implement the reforms, although a timeline for the supporting legislation has not yet been confirmed.

Gambling harm drives reform

The government pointed to findings from the NSW Gambling Survey 2024, which found that 3.1% of the state’s adult population experienced moderate-risk gambling, while another 0.9% experienced high-risk gambling.

New South Wales Minister for Gaming and Racing David Harris described the reforms as an evidence-based approach that seeks to improve player protection without ignoring the economic importance of the gaming industry.

“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.

“Our government will continually explore and implement emerging technology to ensure NSW has the most up-to-date safety measures available built into our gambling industry.”

Facial recognition and statewide exclusion

One of the most significant changes is the introduction of a statewide gambling exclusion register, supported by mandatory facial recognition technology at the entrances of all gaming rooms.

Currently, voluntary self-exclusion only applies across certain hotels and clubs, with much of the responsibility for enforcing exclusions falling on individual venues and employees.

The new system would create a more comprehensive approach across the state.

A third-party exclusion scheme is also planned, allowing friends and family members to initiate exclusion procedures for people considered at risk of excessive gambling. Venues and police would also be able to initiate exclusions.

Fewer poker machines

The government also wants to gradually reduce the approximately 87,000 poker machines operating across 2,100 clubs and hotels in New South Wales.

To achieve this, the forfeiture rate when gaming machine entitlements are traded would increase from one in three to one in two.

A new “sinking cap” would also ensure the statewide maximum number of machines continues to decline as gaming machine entitlements are removed from circulation.

New South Wales is additionally preparing for the potential introduction of account-based gaming, which would provide greater visibility over who is gambling and how they are playing.

However, the government acknowledged that much of the existing gaming machine infrastructure relies on legacy technology. It therefore plans to upgrade the state’s Central Monitoring System over the next two years to support a future transition towards account-based play.

Tougher gambling advertising rules

Advertising and marketing will also face significantly tighter restrictions under the reform package.

The government plans to ban gaming-related VIP programmes, while gambling advertising would be prohibited across assets owned by the New South Wales government and local councils.

Betting operators would also require express consent from consumers before directly marketing to them through phone calls, emails or text messages.

Additional transparency requirements will apply to gambling promotions conducted by affiliates and influencers, while commissions linked to higher-risk gambling products will face further restrictions.

The measures reflect a broader attempt to reduce the visibility and direct targeting of gambling products, particularly among consumers considered vulnerable to gambling harm.

Online gambling also in focus

Although many of the reforms focus on New South Wales’ large land-based gaming sector, the government is also preparing measures targeting online gambling.

Authorities have committed to developing a dedicated strategy to reduce harms associated with online gambling, while strengthening enforcement against illegal operators.

This will include new offences and tougher penalties for companies operating outside the legal framework.

The package represents one of the most comprehensive gambling reform efforts undertaken in New South Wales, combining technology, exclusion measures, reduced machine availability, advertising restrictions and stronger enforcement.

While the legislative timeline remains unclear, the AU$95.2 million commitment demonstrates the government’s intention to significantly reshape gambling regulation and player protection across the state.

Source: IgamingBusiness