NSW introduces facial recognition at gambling venues for statewide exclusion register

The government of New South Wales is cracking down on gambling with a new set of reforms, including a statewide exclusion register with mandatory facial recognition at the entrances to gaming rooms.

A release from the state government says the new rules will enable people who choose to exclude themselves from gambling to enroll in a statewide register that covers every venue housing gambling machines, including pubs, clubs and hotels. In doing so, they can ensure their exclusion follows them from venue to venue.

The system also accounts for third-party exclusions by concerned family members and friends when there is a significant risk of gambling harm. Police will also be able to initiate third-party exclusions where there are risks related to money laundering or the use of proceeds of crime.

Mandatory facial recognition at the threshold of gambling rooms will be introduced in tandem with the NSW State Exclusion Register in 2028. It is part of a larger tranche of reforms that also includes a reduction in the number of poker machines in the state, a ban on gambling ads on all NSW Government and council-owned assets, a ban on unsolicited direct marketing to new customers, and new regulatory powers, among other changes designed to limit gambling-related harms.

The government is committing $95.2 million over four years to fund the work.

Account-based play points to potential market for biometrics providers

Minister for Gaming and Racing David Harris says the package represents “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.”

The minister insists the system will adhere to “really strict guidelines” governing what can and can’t be done with collected biometric data, and will help build the foundation for better safeguards against money laundering using gambling machines.

“By combining new technology, stronger exclusion tools, strengthened regulation and increased funding for harm reduction, we are building a safer system for the future,” he says.

Part of that vision is account-based play – which represents another potential market for biometric verification providers. An account-based system would allow players to use a registered account at a poker machine, creating something more like an online network.

Per the NSW release, “a significant proportion of gaming machine infrastructure rely on legacy technology.” The government plans to upgrade its Centralized Monitoring System (CMS) over the next two years to phase in account-based play. Presumably, any account-based system requiring login would also require strong verification for players. Face biometrics, already deployed at the entrance to gaming venues, could offer a solution.

The government says that “rapid advancements in technology since the Cashless Gaming Trial have demonstrated there are many account-based play solutions that can be implemented to meet the anti-money laundering and harm minimisation benefits of cashless, while allowing players to continue using cash if they prefer.”

As the new rules and ecosystems roll out, the government is also working with hotels and clubs on diversifying their revenue streams to be less dependent on gambling machines.

Earlier this year, the government introduced a facial recognition code of practice to help businesses reduce harms related to problem gambling, developed following consultation with stakeholders from government, the Office of the Australian Information Commissioner, the NSW Privacy Commissioner, and biometrics providers.

Article Topics

Australia  |  biometrics  |  casinos  |  facial recognition  |  gambling  |  New South Wales (NSW)