NSW Gambling Tax Revenue Set to Surge, Reform Stalls
Government data projects gambling tax revenue to rise from $3.8 billion to $4.7 billion by 2030, while key independent panel recommendations remain unimplemented.
Projected Revenue Increases
The NSW state budget forecasts annual gambling tax revenue will rise from $3.8 billion in 2025-26 to $4.7 billion by 2029-30.
Revenue specifically from poker machines in pubs and hotels is expected to increase by 7.5% annually, from $1.6 billion in the current financial year to $2.2 billion in 2029-30.
Government Statements on Reform
NSW Treasurer Daniel Mookhey stated that Treasury did not model the effect of any potential gambling reform on future tax revenues. He said modeling reflects current policy settings and that there is "legitimate" disagreement on the appropriate level of gambling.
Premier Chris Minns cited several actions taken by the government, including:
- A reduction in the statewide machine limit from 99,000 to 95,739
- Revocation of 670 exemptions to mandatory shutdown hours
- A reduction of the cash input limit for new machines from $5,000 to $500, effective July 1
A government spokesperson said they are "closely considering the complexities and costs associated with gaming reform."
Unimplemented Recommendations
Labor promised before the 2023 election to reduce poker machine numbers and implement a cashless gaming trial. Following a 2024 trial, no commitment to a cashless card system has been made.
The government has not responded to 30 recommendations from the Independent Panel for Gaming Reform, including a proposed centralized account-based gaming system. Premier Minns cited cost concerns regarding cashless gaming technology.
The government is developing a statewide exclusion register with facial recognition technology, though privacy issues remain unresolved.
Citizen Complaint and Response Timeline
"I am sorry to hear about what you have been experiencing" — Draft response to a man who lost tens of thousands of dollars, initially read "I am sorry to hear about the problems you are facing" before being changed.
In mid-2024, a Randwick man wrote to the Prime Minister describing losses of tens of thousands of dollars to poker machines, which he said led to financial and marital problems. The email was forwarded to Premier Minns and took over 12 weeks to receive a response, involving at least 11 public servants, according to correspondence obtained by Greens MP Cate Faehrmann.
The man reported that self-exclusion programs did not prevent him from entering gambling venues. A Liquor and Gaming NSW spokesperson confirmed that venues are not penalized for admitting excluded patrons.
Stakeholder Responses
Rev Tim Costello, chief advocate for the Alliance for Gambling Reform, described the revenue figures as a "terrible fail" and "breach of trust."
Wesley Mission chief executive Stu Cameron said pubs have become "clinical and hyper-efficient" in extracting profits from machines.
Greens MP Cate Faehrmann accused the government of giving tax handouts to clubs and stated the government has abandoned efforts to address harm from poker machines.
Background
NSW has approximately 90,000 poker machines, roughly half of Australia's total. The Labor left plans to bring a motion at the upcoming NSW Labor conference to cut at least 45,000 machines over 10 years.