More than half of all gaming machines in Australia are located in New South Wales (NSW). This audit assessed the effectiveness of the regulation of gaming machines in clubs and hotels in NSW, with a focus on harm minimisation requirements. In NSW, the Independent Liquor and Gaming Authority (ILGA) and the Department of Creative Industries, Tourism, Hospitality and Sport share responsibility for regulating gaming machines in clubs and hotels.

Key findings

• The Department and ILGA regulate gaming machines in a structured and consistent manner but are not supporting harm minimisation outcomes effectively.
• NSW has significantly more gaming machines than all other Australian jurisdictions, despite legislative provisions that aim to reduce the number of machines.
• The Department’s strategy for regulating gaming machines does not articulate desired harm minimisation outcomes.
• Responsible Conduct of Gambling training is not effective in minimising gambling harm.
• ILGA does not proactively review licence conditions relating to gaming machines to ensure consistency with contemporary approaches to gambling harm minimisation.

Key recommendations

• The Department should increase the focus of its regulatory strategy on improving harm minimisation outcomes and ensure the gaming machine forfeiture scheme is achieving its legislative objectives.
• ILGA should commence periodic reviews of licence conditions for venues operating gaming machines and increase clarity to industry and other stakeholders about the reasons for its decisions.