The ruling Labor Party in New South Wales has committed to higher pokies taxes for the state’s most profitable clubs and a long-term reduction in poker machine numbers, marking one of the strongest gambling reform positions adopted by the party in recent years.
The motion, passed unanimously at the NSW Labor State Conference on 5 July, proposes increased taxes on large clubs generating more than AU$20 million ($13.1 million) in annual gaming machine profits, alongside a 10-year strategy to significantly reduce the number of poker machines operating across the state.
The reforms come amid growing political pressure over gambling harm, rising poker machine losses and increasing reliance on gambling tax revenue in New South Wales.
Higher pokies taxes proposed for major clubs in NSW
Under the proposal, as reported by Asia Gaming Brief, clubs earning more than AU$20 million ($13.1 million) annually from gaming machines would face higher taxation on their poker machine profits. The plan also includes a moratorium on licences for new poker machines, preventing further expansion of gaming machine numbers across New South Wales.
Premier Chris Minns is expected to take the tougher gambling reform agenda into the next state election campaign, scheduled for March 2027, following sustained pressure from Labor’s left faction and gambling reform advocates.
Machine numbers in NSW to fall over the next decade
A key element of the motion is a long-term reduction in poker machine numbers. Under the agreed framework, 50 per cent of gaming machines would be removed from operation whenever they are transferred between venues. The mechanism is designed to gradually reduce the statewide machine count over the next decade.
The measure follows earlier proposals from Inner West Mayor Darcy Byrne, who called for half of New South Wales’ approximately 90,000 poker machines to be removed over a 10-year period. In May, Byrne urged Labor delegates to support a plan to eliminate at least 45,000 poker machines statewide, arguing that gambling-related harm had reached unacceptable levels. New South Wales currently operates by far the largest concentration of poker machines in Australia, with significantly more machines than neighbouring Victoria and other states.
Facial recognition measures gain support in NSW
The motion also commits the party to introducing mandatory facial recognition technology in all gaming rooms. The technology would support the development of a statewide exclusion register designed to prevent self-excluded individuals and problem gamblers from accessing gaming machine venues.
The Minns government is already understood to be working on related reforms, with NSW Gaming Minister David Harris publicly supporting the conference motion.
The proposal builds on recent regulatory efforts surrounding facial recognition standards in pubs and clubs, as authorities explore new tools to strengthen gambling harm prevention measures.
NSW gambling reform debate intensifies
The latest policy shift comes as debate over gambling reform continues to intensify across New South Wales. According to the 2026-27 NSW Budget, gambling tax revenue is forecast to increase from AU$3.8 billion ($2.63 billion) in 2025-26 to AU$4.7 billion ($3.25 billion) by 2029-30.
Gaming machines located in hotels and pubs are expected to remain the largest driver of gambling tax growth, with revenue from those venues projected to rise from AU$1.6 billion ($1.11 billion) to AU$2.2 billion ($1.52 billion) over the same period.
The revenue forecasts have fuelled criticism from gambling reform advocates, who argue that rising government income from poker machines sits uneasily alongside commitments to reduce gambling-related harm.
The debate has intensified further following record poker machine losses recorded across New South Wales during 2025, increasing pressure on policymakers to pursue stronger consumer protection measures.
Labor says momentum for reform is growing
Following the conference vote, Byrne said support for gambling reform had reached a turning point. He also argued that the interests of the poker machine industry had too often outweighed broader community concerns about gambling addiction and financial harm.
While the conference motion does not automatically require legislation, Labor sources indicated the Minns government had been involved in negotiations surrounding the proposal, suggesting elements of the reform package could form part of future government policy.
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