The government of New South Wales (NSW) has announced plans to implement mandatory facial recognition technology at the entrances of gaming rooms starting in 2028. This initiative is part of a comprehensive gambling reform package that also includes the establishment of a statewide self-exclusion register, aimed at addressing issues related to machine numbers, marketing restrictions, and online gambling-related harm.
The new NSW Statewide Exclusion Register will replace the existing venue-specific system, allowing individuals to voluntarily exclude themselves from certain gaming areas or entire hotels and clubs. The enforcement of these exclusions will now be consistent across all venues in NSW, rather than relying on individual establishments and their staff.
In addition to the exclusion register, the introduction of facial recognition technology will assist NSW Police in combating money laundering and other criminal activities associated with gaming machines. A third-party exclusion scheme will also be implemented for hotels and clubs.
This reform initiative follows the findings of the 2024 NSW Gambling Survey, which revealed that 3.1% of adults in the state engage in moderate-risk gambling, while 0.9% face high-risk gambling.
David Harris, the Minister for Gaming and Racing, emphasized that the Minns Labor government is committed to enacting substantial reforms to mitigate gambling-related harm throughout the state. He noted that these sensible reforms have been developed in collaboration with industry stakeholders, harm minimization groups, and privacy experts to effectively tackle gambling issues while supporting the industry and safeguarding the jobs of many individuals employed within it.
Furthermore, the government plans to expedite the reduction of gaming machine numbers. Currently, NSW has approximately 87,000 electronic gaming machines spread across around 2,100 clubs and hotels, with a noticeable decline in the number of entitlements over the past three years.
The forfeiture rate for gaming machine entitlements will increase from one in three to one in two, meaning that for every two entitlements traded, one will be permanently removed. A new “sinking cap” will also be introduced to lower the statewide limit as entitlements are taken out of circulation.
Existing exemptions that allow some entitlements to be transferred without forfeiture will be tightened, while venues will have the option to voluntarily cancel their entitlements.
The reform package will also pave the way for account-based play in NSW, enabling players to use registered accounts instead of gambling anonymously. Over the next two years, the government will enhance the Centralised Monitoring System to reduce reliance on outdated technology, allowing venues to adopt account-based play at their discretion.
Recent technological advancements since the Cashless Gaming Trial have led to the development of account-based systems that can provide anti-money laundering and harm minimization benefits while still allowing players to use cash.
Marketing restrictions will include a ban on VIP programs associated with gaming and gambling advertisements on assets owned by the NSW Government and councils. Additionally, betting service providers will be prohibited from contacting individuals through calls, emails, or text messages without their explicit prior consent.
New transparency requirements will be imposed on gambling promotions conducted by affiliates and social media influencers, while commissions related to higher-risk gambling products will be limited.
The government will also formulate a statewide strategy to mitigate online gambling harm and enhance enforcement against betting providers and illegal gambling platforms through new offenses, stricter penalties, and expanded regulatory powers.
These reforms are based on recommendations from the Independent Panel for Gaming Reform's Roadmap for Gaming Reform, the Crime Commission Inquiry into Money Laundering via Electronic Gaming Machines in hotels and clubs, as well as stakeholder and community consultations.
The Minns government is set to invest AU$95.2 million (approximately $68.31 million) over four years to support this reform package, utilizing leftover funds from the AU$100 million (around $71.75 million) gambling harm minimization fund and increased licensing fees.