New South Wales will introduce mandatory facial recognition technology (FRT) for hotels and clubs with gaming machines, as part of a gaming reform package, the state government announced. The technology will be tied to an exclusion register and is expected to be ready by 2028.
The statewide register aims to replace the current patchwork of venue self-exclusion agreements for problem gamblers. Over the next couple of years, a mandatory system will cover every hotel and club with pokies and other gaming machines, backed by FRT that automatically flags excluded patrons at the door.
Since March 2026, venues that use FRT for self-exclusion have operated under a non-enforceable code of practice issued by Liquor & Gaming NSW. This code provides formal guidance on the use of FRT, including requirements for data storage and security.
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Currently installed FRT systems are expected to meet the United States National Institute of Standards and Technology (NIST) FRTE/FATE benchmarks on false negative and false positive identification rates across different demographic groups. They also bar venues from linking their FRT systems to other software holding biographical data.
The code includes technical requirements, such as data encryption and firewall protection. FRT data must be stored in Australia, and data transmission must use the Transport Layer Security (TLS) version 1.3 or higher. FRT installers need a Class 2 security licence, and systems are expected to have 99.9 per cent uptime during trading hours.
These systems are expected to undergo penetration testing by independent third parties every 12 months. As a privacy measure, the code requires that biometric signatures and images of patrons are discarded immediately if not matched to excluded persons.
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The use of FRT for anti-money laundering has been postponed, and will be addressed in future reforms. It remains a controversial tool to manage gambling harm, with privacy expert warnings about potential accuracy, bias, and discrimination risk.
New South Wales’ approach differs from South Australia, which uses a government-controlled model. Queensland introduced legislation in 2025 that allows venues to use FRT, but doesn’t maintain an approved-vendor list. Victoria postponed a 2025 trial of pre-commitment gaming cards ahead of further official regulations and consultations.
