Key points:
- Auditor general finds no benchmarks in place for harm minimisation
- Gambling losses and calls to helpline have increased in recent years
- NSW Government faces pressure to respond to outstanding reform recommendations
A review conducted by the New South Wales auditor general has raised fresh concerns over the effectiveness of the State Government’s gambling harm reduction strategy, particularly in relation to poker machines.
The report highlighted that while gambling machine losses have grown over the past three years, the Department of Creative Industries, Tourism, Hospitality and Sport does not currently track whether its regulatory approach is reducing harm. No benchmarks, performance indicators or outcome evaluations have been established.
For example, one of the objectives of the current Gaming Machines Act is to reduce the number of units in the state. While the NSW Government did lower the limit from 99,000 to 95,739 machines in December 2024, this is still higher than the amount in use - there are currently 87,749 in the state, meaning that the number of machines could still increase legally.
The report also explained that, on average, 598 machines a year are being removed. This means that it would take more than 55 years for the NSW to reach the national average ratio for gaming machines per 1,000 adults.
The audit found that calls to the GambleAware helpline rose by 8.5% in 2023–24, and projected gambling tax revenue would climb from AU$2.47bn to AU$2.91bn by 2027–28 due to increased machine usage.
Unions NSW and gambling support charities have criticised the Government’s response, citing a lack of urgency. The union’s secretary said the state was relying on administrative reforms while communities, especially in lower-income regions, continued to bear the brunt of rising losses.
Good to know: There are nearly 90,000 poker machines in NSW. In some areas, losses exceed AU$3,225 (US$2,140) per adult each year
State gaming minister David Harris defended the Government’s initiatives, which include reducing cash withdrawal limits, banning external venue signage, increasing the number of responsible gaming officers and committing AU$100m to a harm minimisation fund.
However, critics argue that limited progress has been made. A pilot for a cashless gaming system drew only 32 participants and the Government has yet to respond formally to reform proposals submitted by an independent panel in 2023. The report’s recommendations remain under consideration.
