The New South Wales Government has committed AU$95.2m (US$68m) over four years to a package of gambling reforms covering gaming machines, exclusions and marketing restrictions, as Australia's wagering sector prepares for tighter regulation at both state and federal level.
NSW has around 87,000 poker machines across approximately 2,100 clubs and hotels. Under the changes, the forfeiture rate applying when gaming machine entitlements are traded will increase from one in three to one in two, while a new sinking cap will permanently lower the statewide ceiling as entitlements leave circulation.
The Government will also establish a statewide exclusion register in 2028, supported by mandatory facial recognition technology at gaming-room entrances. The existing system allows people to exclude themselves from individual venues, leaving enforcement largely with venue staff.
A planned upgrade to the Centralised Monitoring System over the next two years will provide infrastructure capable of supporting account-based play. The model would allow registered accounts to be used on gaming machines, although venues would retain discretion over adoption.
The package also bans gaming-linked VIP programs and gambling advertising on NSW Government and council-owned assets. Betting service providers will require prior express consent before sending marketing by phone, email or text.
The state changes come amid a broader tightening of gambling advertising and harm-minimisation requirements in Australia, increasing the compliance burden facing licensed wagering operators.
PointsBet Group CEO, Andrew Catterall, has warned that additional restrictions will add complexity and expense for licensed operators. He said: "What's clear at this point, though, is that the operating model for licensed Australian wagering operators post-reform will get even more complicated and more expensive."
PointsBet has already reduced its free-to-air television advertising and ended major sponsorship agreements with NRL clubs Manly and Cronulla.
Catterall has also raised concerns that higher compliance costs could widen the disparity between licensed operators and offshore businesses that do not face equivalent Australian tax and regulatory obligations.
Funding for the NSW reforms will come from money remaining in the state's AU$100m gambling harm minimisation fund and increased licence fees for clubs and hotels with gaming machines. A further AU$20m will be directed to the Responsible Gambling Fund over two years.
The NSW measures continue a wider review of gambling regulation in the state. In June, Liquor & Gaming NSW opened consultation on the Public Lotteries Regulation 2026, proposing updated responsible gambling requirements for lottery websites and mobile applications while largely retaining the existing regulatory framework.
The NSW Gambling Survey 2024 found that 3.1% of adults experienced moderate-risk gambling and 0.9% experienced high-risk gambling
