Tough Rules in Australia: New South Wales Introduces Facial Recognition in Casinos

The political landscape in Australia is shifting as the New South Wales (NSW) government under Premier Chris Minns takes decisive action. With a new reform package described as the most comprehensive of its kind, the Labor government is tackling the negative impacts of gambling. This news arrives at a time when stricter controls for casinos and betting providers are being discussed globally. The new regulations affect both the land-based sector and strategic approaches to mitigating harm in online gambling.

A particularly controversial aspect is the use of state-of-the-art surveillance technology. Mandatory facial recognition will be introduced at the entrances to gaming rooms. This technology is intended to ensure that individuals listed on a statewide exclusion register are denied entry. This step is a clear message to the operators of hotels and clubs, which traditionally house a large number of slot machines, known as pokies, in Australia. The government is relying on close cooperation between privacy experts and industry representatives to increase acceptance of these measures.

Numbers and facts

A central point of the reform is the change to the so-called forfeiture rate for gaming machine licenses. This rate is being increased from the current 1 in 3 to 1 in 2. In plain terms, this means that when licenses are transferred, more entitlements will be permanently removed from the market, which should reduce the total number of available machines in the state more quickly. Furthermore, all gambling advertising on state and council-owned assets will be banned. This includes public transport and billboards owned by municipalities. Another blow to the industry is the end of all VIP programs, which previously served specifically to retain high-turnover players at the machines.

Gaming Minister David Harris clarified that these reforms are necessary to build a safer system for the future. He emphasized the importance of the technological component:

„By combining new technology, stronger exclusion tools, strengthened regulation and increased funding for harm reduction, we are building a safer system for the future. Our government will continually explore and implement emerging technology to ensure NSW has the most up-to-date safety measures available built into our gambling industry.“ - David Harris, Minister for Gaming and Racing

Background

The government's decision is not surprising, as pressure from player protection organizations has increased massively in recent months. Only last week, the organization Responsible Wagering Australia hit out at plans for a nationwide opt-out register for advertising purposes. However, New South Wales is now forging its own path, which goes far beyond mere advertising restrictions. The package also includes a third-party exclusion scheme, which could, for example, allow family members to ban vulnerable individuals from gambling operations in clubs and hotels.

In addition to physical on-site controls, NSW plans a state-based strategy to reduce online gambling harm. This is particularly important as the market for digital betting and casino games continues to grow in Australia. The government wants to ensure that unsolicited direct marketing is no longer sent to potential customers. This is a reaction to aggressive marketing practices that have often been criticized in the past.

Why it matters for German players

For players in Germany, some of these measures sound familiar, but they go significantly further in terms of surveillance. While the OASIS locking system in Germany is already centralized and ensures the exclusion of players nationwide, mandatory facial recognition at every entrance to a gaming area is currently not planned here. German rules are based on the Interstate Treaty on Gambling 2021 (GlüStV 2021), which prescribes strict limits such as the 1,000 euro deposit limit per month and the 1 euro stake limit per spin on slots. Monitoring in Germany is primarily carried out via the LUGAS system, which controls compliance with these limits.

A German player playing in a casino with a GGL license already enjoys a high standard of protection. The Australian plans to completely abolish VIP programs are also applied in a similar form in Germany, as bonuses and incentives are strictly regulated here to avoid creating gambling incentives for vulnerable persons. Nevertheless, the development in New South Wales shows that the regulatory screw is being tightened globally, which could also influence European legislation in the long term.

What it means for GGL-licensed casinos

German providers with a license from the Joint Gambling Authority of the States (GGL) do not have to prepare for facial recognition, but the trend towards data-driven player protection is unmistakable. The GGL already monitors the market very closely and ensures that no advertising in public spaces reaches children or young people. A total ban on advertising on municipal areas, as NSW is now implementing, would be a significant restriction on marketing opportunities for German licensees. The elimination of VIP privileges also underlines that the focus of regulatory authorities is shifting away from high-roller marketing towards a mass market with small stakes.