State to allow FRT vendors to self-certify.
NSW will bring in mandatory facial recognition technology (FRT) for hotels and clubs with gaming machines, tied to an exclusion register and expected to be ready by 2028, the state government announced.
NSW’ statewide register is meant to replace the current patchwork of venue self-exclusion agreements for problem gamblers.
Over the next couple of years, a mandatory system is envisaged to 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, the first such formal guidance published by the state on the tech.
Under the current code, FRT providers are not required to seek government approval before installing a system.
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.
The L&GNSW code also bars venues from linking their FRT systems to other software holding biographical data, including venue sign-in databases, scanned credentials or payment mechanisms.
Separately, it prohibits any commercial or marketing use of FRT data, which would rule out feeding it into loyalty programs.
It also prohibits using the technology for any commercial or marketing purpose even with a patron’s consent, closing off the “VIP targeting” use case that drew criticism after three NSW clubs were reported in 2022 to have deployed FRT partly to identify high-value customers.
FRT data must stay in Australia
Technical requirements for the current code include that data must be onshored in Australia, regardless of the FRT being cloud-hosted or on-premises.
Furthermore, data must be encrypted with at least the 256-bit AES algorithm at rest, and use the at minimum Transport Layer Security (TLS) version 1.3 in transit, firewall protection and JSON as the format.
FRT installers need a Class 2 security licence, and systems are expected to have 99.9 per cent uptime during trading hours.
The systems are expected to undergo penetration testing by independent third parties every 12 months.
As a privacy measure, the present code requires that biometric signatures and images of patrons, which should be in 1080p resolution or better, are discarded immediately, if not matched to excluded persons.
FRT use for anti-money laundering has been parked for the current gambling reform package, and addressed in future reforms
Promised in 2023 by current Labor premier Chris Minns, then in opposition, FRT remains a controversial tool to manage gambling harm, with privacy expert warnings about potential accuracy, bias and discrimination risk for the technology.
NSW’ approach differs from South Australia, which uses a government controlled model since 2020, under which providers must submit their systems to the state’s Consumer and Business Services for evaluation and approval.
Queensland introduced legislation in 2025 that allows venues to use FRT, but doesn’t maintain an approved-vendor list which is similar to NSW.
Victoria, meanwhile, postponed a 2025 trial of pre-commitment gaming cards ahead of further official regulations and consultations; the state has self-exclusion programs run by industry bodies, in lieu of FRT.
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