NSW failing on poker machines harm reduction, audit report reveals

A damning audit from the NSW Auditor-General has revealed that the state is falling short when it comes to tackling the harm caused by poker machines, despite laws that are supposed to prioritize harm minimization.

The performance report, released on Thursday (June 12), concludes that “the Department and ILGA regulate gaming machines in a structured and consistent manner but are not supporting harm minimisation outcomes effectively.”

In NSW, it’s the Independent Liquor and Gaming Authority (ILGA) and the Department of Creative Industries, Tourism, Hospitality and Sport that look after pokie machine regulation. Right now, there are more than 87,000 machines spread across over 2,000 clubs and hotels.

The Auditor-General for NSW, Bola Oyetunji, has tabled in NSW Parliament a report titled ‘The mental health and wellbeing of NSW police’.

Read here: https://t.co/ShIHwMynge#AONSW #audit #NSWPolice #MentalHealth pic.twitter.com/xOiPi0gmRA

— AuditOfficeNSW (@AuditOfficeNSW) June 11, 2025

Key findings from the report reveal that gaming machine losses hit AUD 8.4 billion ($5.5 billion), with the biggest impact falling on lower-income areas like Canterbury-Bankstown, Fairfield, and Cumberland, where both losses and machine numbers are heavily concentrated. “Gaming machine losses and the social costs of gambling harm continue to be disproportionately concentrated in socio-economically disadvantaged communities,” the report states.

NSW audit on poker machines suggest not enough clear goals to reduce harm

The audit takes aim at the Department’s approach, pointing out that its regulatory strategy doesn’t include any clear or measurable goals for actually reducing gambling harm. It states: “The strategy does not have a sufficient focus on the areas that are considered high-risk for gambling harm and does not set any targets for reducing harm associated with gaming machines.”

“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.”

Despite mandatory Responsible Conduct of Gambling (RCG) training for venue staff, the report found little evidence of its effectiveness. “The revised course content does not encourage venue staff to proactively address potentially harmful gambling behaviour,” it notes. Only 2% of patrons who accessed counselling services in 2023–24 were referred by venues.

The ILGA was reported to have not proactively reviewed licence conditions for venues in high-risk areas. “Of the ten clubs with the highest profits from gaming machines, six are located in areas considered high-risk for gambling harm. All of these clubs have permission to conduct late-night gaming and none have any additional harm minimisation conditions on their licences,” the report highlights.

Calls to the GambleAware Helpline went up by 8.5% last year, and the 2024 NSW Gambling Survey shows there’s been no real drop in gambling-related harm across the state.

Gambling harm reduction targets

In response, Auditor-General Bola Oyetunji recommends that by June 2026, both ILGA and the Department must “increase the focus of [their] regulatory strategy on improving harm minimisation outcomes” by setting harm reduction targets, reassessing exemptions that allow venues to bypass key restrictions, and conducting periodic reviews of high-risk venues’ licence conditions.

The findings cast doubt on whether NSW is fulfilling its own legislative commitment to reduce gambling harm, stating: “the Department does not know whether its regulatory strategy is effective in minimising gambling harm.”

NSW Audit Office report confirms what we already knew – the NSW govt is failing to seriously address the state's gambling harm public health crisis. Predatory pokies are siphoning over $24m a day out of NSW communities. It's time to #PutPokiesInTheirPlace https://t.co/i4BZBqjYm7

— Jim Wackett (@Jim_Wackett) June 12, 2025

Responding to the findings, Jim Wackett, general manager of the anti-gambling church group Wesley Mission, took to X (formerly Twitter), writing: “NSW Audit Office report confirms what we already knew – the NSW govt is failing to seriously address the state’s gambling harm public health crisis. Predatory pokies are siphoning over $24m a day out of NSW communities. It’s time to #PutPokiesInTheirPlace.”

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