Gambling Reform in Australia Loses Momentum Despite Calls For Tougher Legislation

In New South Wales, the state government recently announced a significant change to how poker machine venues operate. From 1 December, more than 670 pubs and clubs that previously held exemptions allowing 24-hour operation will be required to stop running pokies after 4 am unless they meet new regulatory conditions. Affected operators have until March next year to appeal.

The move follows a report by the NSW Auditor General, which found that more than half of all gaming machines in Australia are located in NSW and that current regulators are not effectively delivering the desired outcomes. The report also noted that 70% of people gambling between 4 am and 10 am were either high-risk or moderate-risk gamblers, which further highlights concerns about late-night gambling.

At the national level, multiple reform advocates have been pushing for changes based on recommendations from the 2023 federal inquiry into online gambling, which urged stronger consumer protections, tighter controls, and a phased ban on gambling advertising. While there is broader political acknowledgement that gambling harm is a serious issue in Australia, translating those recommendations into legislation has been very slow and ineffective.

One key reform under consideration is a comprehensive ban on gambling advertising, particularly during live sports and on digital platforms. Support for this measure has grown among MPs across the political spectrum, with some saying the ban would likely pass Parliament. Some gambling advocates argue that reducing exposure to gambling marketing is essential to prevent normalising betting, especially among young people.

However, Prime Minister Anthony Albanese has signalled caution about an outright ban, saying that enforcing it would be difficult and could push punters toward unregulated operators, and that the government is still considering the practicalities of how reform would work in practice.

One of the main reasons gambling reform continues to stall is the way regulation is split across federal and state governments. Online gambling and advertising rules fall under federal law, while pokies, clubs, pubs, and venue operating hours are regulated at a state level. This division makes it difficult to implement reforms that apply nationwide, even when there is broad agreement on the problem itself.

Legal experts have noted that many proposed harm-minimisation measures appear straightforward in theory but become far more complex once implementation begins. Changes to venue hours, for example, or advertising rules, often require new systems, updated licences, and cooperation from multiple regulators.

In some cases, governments have opted for smaller, easier-to-administer reforms rather than big changes that could face legal or operational challenges and take years, if not decades, to implement fully.

Economic considerations are another factor that slows these gambling reforms. Can’t argue with the numbers, and they show that gambling generates billions of dollars in tax revenue each year, particularly for state governments.

Pokies alone remain a major source of funding for public services, clubs, and community programs, so any reform that significantly affects gambling revenue will face significant resistance from industry groups and governments that are well aware of budget deficits. In other words, no one wants to say no to money.