Liquor & Gaming NSW (L&GNSW) has fined two venues for breaching mandatory gaming machine shutdown rules, following an enforcement operation across New South Wales. The Crown Hotel in Camden and East Cessnock Bowling Club received penalties, while another establishment received an official caution and a fourth faces formal disciplinary proceedings.
The action follows changes introduced in April 2026, when the NSW Government removed exemptions allowing more than 650 pubs and clubs to operate gaming machines during standard shutdown hours.
Current regulations require venues to switch off gaming machines between 4am and 10am daily. The government introduced the six-hour interruption as a gambling harm prevention measure, particularly aimed at reducing opportunities for extended overnight play.
Since April, L&GNSW has reviewed 51 venues across Sydney, the Hunter and the North Coast. Another 70 establishments remain under assessment.
Regulator Examines Compliance Following Rule Changes
Before the reforms, 672 venues held exemptions permitting shorter shutdown periods, generally lasting three hours. Many of these arrangements had remained in place for more than two decades.
The Independent Liquor & Gaming Authority has since approved a small number of establishments to retain reduced operating restrictions following individual assessments.
L&GNSW identifies potential violations through real-time data analysis and targeted inspections, supported by examinations of venue records.
Alongside enforcement measures, the regulator provided education and compliance assistance to 32 venues where officers identified minor or isolated issues. Some cases involved exceptional circumstances beyond operators’ control.
L&GNSW Executive Director Regulatory Operations Dimitri Argeres said the findings indicated widespread compliance among inspected establishments, although several breaches required intervention.
“The six-hour shutdown period is an important safeguard that supports harm minimisation by providing a guaranteed break in gaming machine operation each day,” Mr Argeres said in a press release.
“Our approach is intelligence-led and proportionate. Where issues are minor or isolated, we work with venues to improve compliance. However, significant or repeated breaches will attract stronger regulatory action.”
Argeres also urged operators to ensure staff understand the shutdown requirements and that internal systems prevent machines from operating during restricted hours.
Earlier Violations Attracted Significant Penalties
The latest enforcement operation follows several cases involving substantial penalties for gaming machine operating breaches.
In 2025, authorities fined the Concourse Hotel at Wynyard $110,000 after finding that patrons had access to its 29 gaming machines outside authorised hours.
The former Richards on the Park Hotel at Canley Vale received a $44,000 penalty during the same year for operating machines on 68 occasions when gambling should have been suspended.
Another case involved the Royal Inn Hotel in Newcastle, which received a $7,540 fine in 2024 after investigators identified 13 breaches.
These previous actions demonstrate the potential financial consequences for operators that fail to comply with gaming machine restrictions.
The regulator intends to maintain its intelligence-led inspection programme, focusing additional attention on establishments where operational information suggests possible violations.
NSW Considers Changes to Shutdown Requirements
The NSW Government is also reviewing whether existing shutdown arrangements adequately address gambling-related harm.
In August 2026, authorities announced plans to examine the mandatory shutdown period following evidence that higher-risk gamblers frequently use gaming machines during the early morning.
The review will consider research on gambling harm and the operational consequences of possible changes. Stakeholder consultation will inform any proposed amendments.
Until authorities introduce further measures, the 4am to 10am restriction remains the standard requirement, except where venues hold specific approval for alternative arrangements.
L&GNSW will continue its compliance assessments as the government evaluates the effectiveness of the current framework.