NSW Government Under Fire Over Inaction on Poker Machine Harm, Audit Reveals

The audit revealed that while gambling losses have steadily increased over the past three years, there is no system in place to measure whether current strategies are effectively minimising harm. The Department of Creative Industries, Tourism, Hospitality and Sport has yet to implement benchmarks, performance indicators, or conduct outcome evaluations to assess the impact of its regulatory approach.

One of the stated goals of the Gaming Machines Act is to reduce the number of machines operating in NSW. While the government did lower the cap from 99,000 to 95,739 in late 2024, the actual number of machines currently in use is 87,749—well below the limit—meaning more machines can still legally be added. The report further noted that machines are being removed at a slow rate, with an average of only 598 being withdrawn each year. At this pace, it would take over five decades for NSW to reach the national average ratio of gaming machines per 1,000 adults.

Additionally, the audit highlighted that calls to the GambleAware helpline increased by 8.5% in the 2023–24 financial year, while the state’s gambling tax revenue is projected to grow significantly—from AU$2.47 billion to AU$2.91 billion by 2027–28—largely due to increased machine usage. This surge in revenue has raised questions about the government’s incentives to curb gambling-related harm, particularly in communities where losses already exceed AU$3,225 per adult annually.

Critics, including Unions NSW and gambling harm support organisations, have condemned the lack of urgency in the government’s response. Unions NSW secretary Mark Morey warned that the government was relying too heavily on administrative changes while vulnerable communities, especially those in lower-income areas, continue to suffer from escalating losses.

In defence, State Gaming Minister David Harris pointed to several initiatives, such as lowering cash withdrawal limits at venues, banning external gambling-related signage, boosting the number of responsible gambling officers, and pledging AU$100 million to a harm minimisation fund. However, these efforts have been labelled insufficient by critics, who note that only 32 people took part in a much-publicised pilot of a cashless gaming system. Moreover, the government has yet to issue a formal response to key reform recommendations proposed by an independent panel back in 2023, leaving stakeholders increasingly frustrated with the lack of decisive action.