Key facts
- NSW state budget projects gambling tax revenue to increase from $3.8bn in 2025-26 to $4.7bn by 2029-30.
- Poker machine revenue in pubs and hotels is expected to grow by 7.5% annually, reaching $2.2bn by 2029-30.
- Anti-gambling advocates accuse the government of failing to uphold promises to reduce gambling harm.
- Key reform proposals like cashless gaming cards have not been committed to by the government.
- The government has not yet responded to 30 recommendations from the Independent Panel for Gaming reform.
Anti-gambling advocates have criticized the New South Wales Labor government, stating that projected increases in tax revenue from poker machines demonstrate a failure to uphold promises to reduce gambling harm. The state budget forecasts a significant rise in overall gambling tax revenue, from $3.8 billion in 2025-26 to $4.7 billion by 2029-30.
Specifically, revenue from poker machines in pubs and hotels is expected to grow by 7.5% annually, outpacing inflation. This projection means the government anticipates collecting $2.2 billion from poker machines in 2029-30, compared to $1.6 billion in the current financial year. The total extra gambling tax revenue over the forward estimates, before inflation adjustment, is projected to exceed $2.2 billion.
NSW Treasurer Daniel Mookhey stated that while Treasury did not model the impact of gambling reforms on future tax revenues, he denied this indicated a lack of future changes. He explained that budget modeling reflects current policy settings and that Treasury's role is to report the numbers as they are. Mookhey acknowledged that there is disagreement on the appropriate level of gambling.
Rev Tim Costello, chief advocate for the Alliance for Gambling Reform, described the budget figures as a "terrible fail" and a "breach of trust" by the Minns government, suggesting Labor "has a gambling problem." Progress on gambling reform has reportedly stalled since the 2023 election, despite Premier Chris Minns's prior commitment to reduce the number of poker machines and trial cashless gaming.
The government has not yet committed to implementing cashless gaming cards, a recommendation from the state's crime commission for harm reduction and anti-money laundering. Furthermore, no response has been provided for the 30 recommendations made by the Independent Panel for Gaming reform in November 2024, including a statewide "centralised account-based gaming system."
Analysis from Wesley Mission suggests that gamblers are on track to lose over $10 billion to poker machines by 2026. The state government continues to benefit from poker machine profits, particularly from pubs and hotels, where profits are forecast to increase by 8% annually until 2027-28, significantly higher than the 4% growth in registered clubs. Clubs, however, benefit from a tax concession that is expected to cost the NSW government over $1 billion this financial year.
Greens gambling harm reduction spokesperson Cate Faehrmann criticized the government for providing "millions in tax handouts to wealthy clubs" while families suffer from gambling addiction. She stated the Minns government had abandoned any intention to reduce gambling harm.
The nearly 90,000 poker machines in NSW, representing about half of the national total, are expected to be a key issue at the upcoming NSW Labor conference. A motion supported by various factions aims to commit the party to cutting at least 45,000 machines over a decade.
In response to questions, Premier Minns defended the government's actions, highlighting a reduction in the statewide machine limit from 99,000 to 95,739, the revocation of 670 exemptions to mandatory gaming machine shutdowns, and a reduction in the cash input limit for new machines from $5,000 to $500. A government spokesperson indicated that the complexities and costs associated with gaming reform, considering the industry's support for over 150,000 workers, are being closely considered.