The New South Wales government is set to accelerate its gambling reform agenda after a surge in poker machine tax revenue delivered an unexpected fiscal windfall. According to the latest budget papers, revenue from pokies taxes reached a record $2.3 billion in the 2025-26 financial year, exceeding forecasts by 12 per cent.
Record Revenue Fuels Reform Ambitions
Treasurer Daniel Mookhey confirmed the additional funds will be directed toward harm minimization measures, including the expansion of cashless gaming trials and increased support for problem gambling services. “This revenue gives us the capacity to implement meaningful change without burdening taxpayers,” Mookhey said. The government has pledged to introduce mandatory cashless gaming cards across all venues by 2027, a key election promise.
Industry Pushback and Political Dynamics
The reforms have faced resistance from clubs and pubs, which argue that cashless systems will hurt patronage and revenue. ClubsNSW chief executive Rebecca Riant said the industry is already struggling with rising costs and compliance burdens. However, the government maintains that the revenue surge demonstrates the sector can absorb tighter regulation. Opposition leader Mark Speakman accused Labor of “taxing addicts” and called for a slower rollout.
Impact on Problem Gambling Services
The additional $280 million in revenue above forecast will be allocated to expanding counseling services, self-exclusion programs, and a public awareness campaign. The NSW Responsible Gambling Fund will receive an extra $75 million over four years. “Every dollar from pokies should be reinvested to help those affected by gambling harm,” said Mookhey. The government also plans to fund independent research into the effectiveness of pre-commitment technology.
Broader Fiscal Context
Overall gambling tax revenue in NSW rose 8.5 per cent to $3.1 billion, driven by strong pokies turnover. The state budget deficit narrowed to $4.5 billion, helped by the unexpected tax haul. Treasurer Mookhey cautioned that the revenue spike may not be sustainable, as economic conditions and consumer behavior evolve. The government will release a detailed implementation plan for the cashless gaming trial in September.
