NSW Mandates Facial Recognition for Statewide Gambling Exclusion Register

The New South Wales (NSW) Government has announced a regulatory reform package requiring all licensed hotels and clubs operating gaming machines to implement mandatory facial recognition technology (FRT) at gaming room entrances by 2028. Designed to support a new centralized State Exclusion Register, the technology will replace fragmented venue-by-venue self-exclusion agreements with an automated, state-wide enforcement mechanism. The initiative impacts approximately 2,100 venues and 87,000 electronic gaming machines across the state, marking a significant shift toward technology-driven harm-minimization standards in the gaming sector.

System Overview and Operational Framework

Under the new framework, individuals who choose to self-exclude from gambling will be enrolled in a single statewide database. Biometric cameras installed at gaming room thresholds will scan entering patrons and automatically cross-reference their facial data against the central register.

Key features of the updated system include:

• Statewide Continuity: Exclusion orders will automatically apply across all licensed premises statewide, eliminating the need for individuals to register at multiple venues.

• Third-Party Exclusions: Family members, friends, or venues can apply to exclude individuals experiencing severe gambling harm. NSW Police will also hold authority to initiate exclusions linked to money laundering or proceeds of crime.

• Human-in-the-Loop Verification: Automated matches generated by FRT systems will require human verification by trained venue staff prior to taking enforcement action.

Technical Compliance and Privacy Safeguards

To address privacy considerations, the NSW Government has structured strict regulatory parameters surrounding the deployment and management of biometric data. In accordance with guidelines established by Liquor & Gaming NSW, venues and technology vendors must adhere to defined technical requirements:

• Data Isolation: Biometric databases cannot be integrated with venue sign-in systems, digital credential readers, or payment processing mechanisms.

• Commercial Use Prohibition: The use of FRT data for marketing, customer tracking, or loyalty programs – including VIP targeting – is strictly prohibited, even with patron consent.

• Security and Data Residency: All biometric information must remain hosted onshore within Australia and protected using at least 256-bit encryption standards.

In a statement regarding the reform package, Minister for Gaming and Racing David Harris described the measure as “common sense reforms that have been developed alongside industry, harm minimization groups, stakeholders and privacy experts to address gambling harm while supporting the industry and protecting the livelihoods of the many people it employs”.