Image: Gambling Machine Coolangatta Sands Hotel
A new report has revealed that the government is falling short in reducing the harm caused by the widespread presence of gaming machines (also known as poker machines or pokies) in the state’s pubs and clubs.
On Thursday morning, auditor-general Bola Oyetunji released the Regulation of Gaming Machines report, which revealed that the number of pokies in the state had increased over the last two years despite the state’s efforts to reduce their number through legislation. As of June 2024, there were 87,749 gaming machines operating in clubs and hotels.
In June 2023, the NSW Government amended gaming machine laws, reducing the statewide cap on entitlements from 99,000 to 95,994. By December 2024, the cap will further decrease to 95,739. This adjustment means that, despite the legislative push, the total number of gaming machines in NSW could rise by up to 8,000, staying within the new cap.
The damning report also criticised the focus of compliance and enforcement efforts, highlighting that they have mainly concentrated on recent legislative changes regarding the layout and signage of gaming machine rooms.
“The Department does relatively little to assess the actions taken by venue managers and staff to identify and prevent harmful gambling activities. There is a risk that this approach creates incentives for venues to focus on complying with specific regulatory requirements rather than taking meaningful actions to prevent observed examples of harmful gambling in their premises,” Oyetunji wrote.
“Gaming machine losses and the social costs of gambling harm continue to be disproportionately concentrated in socio-economically disadvantaged communities,” Oyetunji added.
Unions NSW Calls for pokies and gambling reform
Australians outspend the citizens of every other country on online gambling with $95 billion turned over in poker machines in NSW pubs and clubs each year, equivalent to almost three times the NSW Health budget. Of the $25 billion Australians lose to gambling every year, poker machines account for $11.7 billion.
Last year, Unions NSW called for a stronger regulatory framework to reduce the numbers of poker machines in the state.
At its 2024 Annual General Meeting, Unions NSW called on the NSW Government to reduce the number of pokies and gaming machines in the state through several measures, including:
- A moratorium on new poker machine licences in pubs and clubs.
- Cancellation of licences and removal of machines when establishments close or relocate.
- A phased, five-year reduction of poker machines, aiming to reduce the total by approximately 25,000, bringing NSW in line with Queensland.
- Redirecting the $1 billion tax subsidy for poker machines in clubs to compensate for the removal of licences, with minimal compensation due to historical profits from these machines.
Unions NSW reported the top six local government areas (LGAs) for gambling expenditure in the first nine months of 2022, with significant spending per adult:
- Canterbury-Bankstown: $2197
- Fairfield: $3810
- Cumberland: $2527
- Blacktown: $940
- Sydney: $1649
- Central Coast: $1075
These figures highlight significant regional disparities in gambling expenditure across NSW.
Following the release of Auditor-general Bola Oyetunji’s report, the NSW government has implemented some initiatives to address gambling-related harm. These include:
- Introducing Responsible Gambling Officers in venues with more than 20 gaming machine entitlements from 1 July 2024
- Mandating that all venues with gaming machines must keep a Gaming Plan of Management and a Gambling Incident Register from 1 September 2024
- Announcing a ban on gambling advertising on public transport and terminals people catch it
- Investing $100 million into the Gambling Harm Minimisation Fund from the fine imposed on the Star Casino by the NSW Independent Casino Commission
- Consulting with the community on a third-party exclusion scheme and use of mandatory facial recognition technology to support a statewide exclusion register for NSW hotels and clubs with gaming machines
Further recommendations by Auditor-General on Gambling-Related Harm
The Auditor-General has recommended that the Department of Creative Industries, Tourism, Hospitality and Sport take several key actions by June 2026 to improve harm minimisation efforts. This includes establishing baselines and targets for reducing gambling harm, enforcing critical regulatory requirements, and publicly reporting on outcomes rather than just activities.
The department should also review the gaming machine forfeiture scheme to ensure it effectively reduces machine numbers and encourages venues to surrender gaming machines in high-risk areas.
The Independent Liquor and Gaming Authority is also advised to begin periodic reviews of licence conditions for venues in high-risk locations, ensuring they align with current harm minimisation evidence.
These recommendations aim to strengthen regulatory strategies and ensure policies are better aligned with harm reduction goals.
