Hospitality and Racing NSW announce its Regulatory Priorities July to Dec 2024
Hospitality and Racing NSW has released its Regulatory Priorities, July to December 2024 (Regulatory Priorities). Hospitality and Racing NSW was established in 2022 and brings together Liquor & Gaming NSW (L&GNSW), the Office of Responsible Gambling and the Office of Racing under a single leadership structure. While the Regulatory Priorities encompasses all departments within Hospitality and Racing NSW, the focus of this article is on L&GNSW which administers the regulatory framework for liquor, gambling and registered clubs in NSW. L&GNSW’s remit includes licensing and compliance activities, policy advice, education and engagement activities.
Author: Daniel Lovecek, Principal / Bree Ryan, Senior Associate
Regulatory focus areas
The Regulatory Priorities highlights the relevant priorities for the second half of 2024 as:
• gaming harm minimisation through:
gaming reform in the form of an expanded cashless gaming trial;
monitoring the implementation of new gaming harm minimisation measures in pubs and clubs which came into force on 1 July 2024. These include the introduction of new Responsible Gambling Officer (RGO) requirements for venues with more than 20 gaming machine entitlements;
the implementation of carded play and cash limit requirements under the Casino Control Act 1992 which will come into effect from 19 August 2024;
• online wagering and point of consumption tax (POCT). L&GNSW has advised that it will undertake detailed proactive revenue audits of wagering service providers relating to their POCT compliance. L&GNSW also intend to work with federal, state and territory colleagues to implement further reforms to the online wagering regulatory framework. We anticipate that this will include adapting to the Federal Government’s much-awaited response to the ‘You Win Some, You Lose More’ Report; and
• technology, innovation and process improvement to streamline the regulatory functions.
Compliance and enforcement priorities
The Regulatory Priorities also sets out gaming industry compliance and enforcement priorities for the
second half of 2024. These include:
Wagering and lottery practices
Provide education and advice to new entrants to the wagering sector to assist understanding of legislative obligations in relation to inducement advertising.
Test compliance with the National Consumer Protection Framework requirements around account closures.
Continue to monitor and take strong action in response to breaches of wagering advertising requirements.
Update the L&GNSW Gambling Inducement Guidelines.
Proactive compliance monitoring and testing of online lottery providers operating in NSW without a licence and use the outcomes to inform enforcement action and legislative change.
Gaming and Wagering
• Compliance activity aimed at:
identifying and intervening when venues are found to be offering free liquor to patrons as an inducement to gamble;
ensuring compliance with mandatory gaming machine shutdown periods; and
improving controls aimed at preventing minors and those at risk from gambling harm from accessing gambling.
• Actively monitor signage at hotels and clubs for any attempts to circumvent the law by introducing new gaming terms, symbols, or motifs, following the 2023 ban on gambling related signage.
Liquor and gaming
• Establishment of a framework for monitoring liquor and gambling-related harm that impacts regional and vulnerable communities in NSW. This framework will include quarterly regional inspection programs in specified jurisdictions.
Registered clubs
• Assessment of clubs’ annual returns to ensure they meet the eligibility criteria set out in the ClubGRANTS Guidelines. The ClubGRANTS Tax Rebate Scheme enables clubs to claim a tax rebate of up to 1.85% of their gaming machine profits above $1 million for community development and support.
Casino
• Casino compliance monitoring will continue to focus on auditing, testing and monitoring compliance with legislative requirements and the effectiveness of the relevant policies and controls across various dimensions including customer onboarding, mitigation of risks of criminal influence, exploitation and community harm, excluded patrons, probity assessments of close associates of casino operators and controlled contractors and a range of other activities.
Liquor
• Reducing harm associated with misuse and abuse of liquor, including intoxication, consumption by minors, alcohol-related violence, and other anti-social behaviour at major and high-risk events and precincts, for example, the Snow Season, State of Origin, Olympics, NRL Grand Final and Melbourne Cup.
Licensing priorities
Hospitality and Racing NSW is continuing to measure customer satisfaction and implement innovative technology improvements to reduce processing times and remove paper-based reliance.
Regulatory reforms
In the gaming space, Hospitality and Racing NSW will continue to implement gaming reforms directed at reducing gambling harm, money laundering and criminal activity associated with poker machines. This will include reducing cash input limits on older gaming machines, expanding the self-exclusion register to the whole state and to allow for third party exclusion, requiring facial recognition technology in pubs and clubs and increasing the rate of forfeiture for gaming machine entitlements.
In wagering, we are expecting a long-awaited update to the L&GNSW Guidelines for Gambling Advertising and Inducements to ensure it is reflective of current public expectations and industry operations. It is also proposed that the Bookmaker Telephone and Electronic Betting Conditions will be reviewed to clarify the harm minimisation standards that must be upheld. In addition, a regulatory response can be expected once the Federal Government has responded to the recommendations of the ‘You Win Some, You Lose More’ Report (as discussed above).
In August, a statutory review of the effectiveness of the Casino Control Act 1992 will commence and is expected to be completed in approximately 12 months.
For liquor, Hospitality and Racing NSW will continue to implement the Vibrancy Reform Act 2023 which provides for a more streamlined approach to consultation and L&GNSW becoming the regulator responsible for noise complaints at licensed premises. There are also foreshadowed improvements (following key stakeholder engagement) to the same day alcohol delivery framework to ensure it remains fit for purpose and meets community expectations.
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